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5 Porter Analysis

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5 Porter Analysis
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FIVE FORCES ANALYSIS
The specialty chemicals market will be analyzed taking specialty chemicals manufacturers as players. The key buyers will be taken as b2b end-users, and commodity chemicals producers as the key suppliers.

Summary
Figure 1: Forces driving competition in the specialty chemicals market in China, 2011

SOURCE: MARKETLINE

MARKETLINE

The degree of rivalry is assessed as moderate, as the main players are large multinational companies, with the resources to compete for contracts and diverse product range, reducing their reliance on this market alone.
The specialty chemicals market is characterized by relatively low product differentiation, although products are less commoditized than base chemicals. Entry barriers include capital requirements to establish manufacturing facilities, and increasingly stringent market regulations, which all serve to increase rivalry.
Customers generally have few alternatives to the specialty chemicals they buy, so that the market players face little in the way of indirect competition.
Buyer power is assessed as moderate, as specialty chemicals are

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