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1. The bargaining power of customers
Clients have a lot of bargaining power with respect to their utilization of ABC company items. There are close substitutes for ABC company items which take into account the preferences of the client to be extremely compelling. ABC comprehends the intensity of the customer and has found a way to address the issues of its items customers.
2. New competitors in the industry
The ABC Company is vast and focused. It is exceptional for firms within the business to do great. Therefore, numerous organizations go into the market yearly trying to pick up a segment of the productive market. For ABC, the organization lucky enough has been around for over a century and flaunts a long history of value items and consumer fulfillment, which has enabled the organization to get a significant offer of the market.
3. Substitute commodities
Competitive pressure arising from the attempts companies outside the industry to win customers over to their products that appear different but can satisfy the same need as another product. ABC has worked on this by:
• Producers of substitutes are moving to add new capacity
• Faster growth in sales of substitutes than sales of the industry being analyzed and many more.

4. Bargaining power to the suppliers
ABC company prides itself on making and keeping up positive associations with its suppliers in all nations. Because of the huge buying intensity of ABC, and in light of the fact that the providers of various wares offer an item that is a long way from special, Nestlé holds more bargaining power than its providers. Beside this, ABC Company likes to make and preserve long-term associations with its providers as this guarantees the nature of the raw materials being bought. Lastly, ABC offers valuable exhortation to its providers on how to perform all the more productively to limit superfluous expenses.

3. Competitive aspect
When conducting competitive analysis companies tend to focus on direct competitors and look for means to determine their strengths and weaknesses. By doing this the company gets an image and figures out how much income the competitor may be able to spend on promotions, new products, research and customer area catchment.
If there is a chance that either one of this factors change occurs companies may have to respond by comimg up with new strategies. Companies aim on how to achieve sustainable competitive advantage, by doing this it enables them to run and succeed for a long time. As a result of differentiation, company can demand higher price for its products or service. A company can gain competitive advantage through cost. When the prices are low and the products are of quality and more efficient due to cost advantage the company will gain superior profits compared to others