GOALKEEPER'S FIVE FORCES MODEL1. Rivalry among existing competitors - (high) • Numerous and equally balanced competitors – Since a large number of competitors already exist in this industry, the rivalry for better quality at a cheaper price is quite high. • Shorter product life cycle – As technology is growing at a rapid pace, the life cycle of products has become relatively shorter.• High research and development costs – to create a better or replacement product with better additional features large investments in research and development are required, which can be very risky because if the product fails, the costs incurred are sunk costs and cannot be recovered. • Imitation of technology – Since the concept of reverse engineering has allowed everyone to imitate the technology used by the rival company, it becomes a difficult task to maintain exclusivity and uniqueness.• Low profit margins – As competition is high in this industry , prices must be kept minimal so that customers do not purchase other brands with the same specifications. This in turn reduces the firm's profit margin. • High barriers to exit – Since there are huge fixed costs associated with starting an industry, exiting the business means excessive losses that are almost impossible to recover.2. Threat of new competitors - (low)1. Economies of scale – It is very significant as the fixed costs associated with setting up a manufacturing facility are quite high due to inefficient infrastructure, lower water and electricity supply, reasonably high capital cost and continuous improvement of technical efficiencies and management. 2. Product Differentiation – Even though consumers are becoming more aware of product differentiation, they are still...... middle of paper...... Face Mounted Technology (SMT)/AutoInsertion. Skilled manpower to operate SMT/Auto Insertion Machines is expected to be a major shortage • Corporate Social Responsibility (CSR) Environmental • Environmental Protection Agency of India – As of today this agency does not regulate waste electronics and local governments for the collection of electronic waste and their disposal. • Electronic waste management (waste such as lead, cadmium, mercury, etc.) – The total waste generated by the electronics industry amounts to 1,600,000 tons per year. In India, the problem of e-waste has not been adequately addressed. Hazardous Waste Regulations of 1989 (as amended 2003). Technologies • Degree of automation • Emerging technologies • Impact of the Internet • Rate of technological change • Research and development activities Legal • Tax policies • Labor laws • Trade Restrictions• Government acts (e.g. environmental protection law, 1986)