1. the threat of new entrants

Connector products and equipment essential to the important parts, proportion in many applications in the field of procurement has more than 10% total procurement cost. And compared with other key components, connector products a wide range of choice, its local purchase more space, so the barriers to entry are not high. Barriers to entry exist mainly in the advantages of product differentiation, scale economies, sales channels, and capital requirements, switching costs, cost advantages, and so no special requirements. Connector market vitality and in the communication on rail, energy industry, mechanical industry, high growth potential, are attracting a growing number of new entrants.

2. the threat of substitutes

Connector terminals are the main alternatives. Is in the high-end market, the connector is not their alternatives, this is the connector itself is largely evolved from the Terminal, was to plug cable easily and quickly without error. In the low-end market, larger connector under the threat of substitutes, when under pressure from the cost of the buyer, would select average quality, inexpensive terminals.

3. bargaining power of buyers

Connection Manager of buyer is products and equipment producers, buyer of concentrated degrees high: buyer from this industry purchased of products in its total cost in the is located share about for 10%; buyer from this industry purchased of standardization degree is improve: buyer of profit capacity has reduced of trend; buyer has capacity for Hou to integration; both of information more transparent; so this all makes buyer of ask capacity increasingly high.

4. the bargaining power of suppliers

Connector supplier is a supplier of aluminum, copper, silver, gold, etc; engineering plastics and other raw materials suppliers. Seller concentration, standardization of the industry higher trading to buy a House is very large; a small level of product differentiation; conversion cost less than the seller; forward integration is unlikely; information is transparent for both; generally the seller bargaining power is relatively low, existing enterprises between the buyer and the seller has been able to maintain profit margins.