PORTER'S FIVE FORCES MODEL1. Rivalry among existing competitors – (High) • Numerous and equally balanced competitors – As there are already a large number of competitors in this industry, the rivalry for better quality at a cheaper price is quite high. • Shorter Product Life Cycle – As technology is growing rapidly, the life cycle of products has become relatively shorter. • High R&D costs – To come up with a better or replacement product with better added features, it requires large investments in research and development, which can be very risky. because if the product fails, the costs incurred are sunk costs and cannot be recovered. • Imitation of technology – As the concept of reverse engineering has made it possible for everyone to imitate the technology used by the rival company, it becomes a difficult task to maintain exclusivity and uniqueness. • Low profit margins – Like the Competition is high in this sector, prices should be kept minimal so that customers do not buy other brands with the same specifications. This in turn reduces the company's profit margin. • High barriers to exit – As there are huge fixed costs associated with setting up an industry, exit from the business results in excessive losses which are almost impossible to recover.2. Threat of new entrants – (low)1. Economies of Scale – This is very important because the fixed cost associated with setting up a manufacturing plant is quite high due to inefficient infrastructure, reduced water and electricity supply, low cost reasonably high capital and continuous improvement in technical and managerial efficiency. 2. Product Differentiation – Even though consumers are becoming more aware of differentiated products, they are still in the middle of paper......Face Mounted Technology (SMT)/AutoInsertion. There is expected to be a serious shortage of skilled labor to operate SMT/Auto-insertion machines. • Environmental Corporate Social Responsibility (CSR). waste and its disposal.• Electronic waste management (waste like lead, cadmium, mercury, etc.) – The total waste generated by the electronics industry amounts to 1,600,000 tonnes per year. In India, the problem of e-waste has not been properly addressed. Hazardous Waste Rules, 1989 (amended in 2003). Technological • Degree of automation • Emerging technologies • Impact of the Internet • Rate of technological change • R&D activity Legal • Tax policies • Labor laws • Trade Restrictions• Government laws (Ex: Environmental Protection Law, 1986)