Towngas - Porter's five forces model (急...交功課)

1) Fiver Forces Model:
Rivalry-low, and few comptitors like CLP, HK Electric, and LPGas supplies at old residential areas
New Entrants: No entrants at this moment, since its high entry barriers and high investment that cause later comer's disadvantage of probable development of central LPGas supplies, which would not have good enough customers to support its operation.
Substitutes: less, only Electricity and LPGas
Supplier bargaining: High, Petroleum price linked to world market
Buyer bargaining: low, because of high switching cost to use the electrical appliances although the charge of electricity power is likely cheaper this moment.
2) PEST analysis (most likely positive to Towngas Co with no impact)
P: Government policy on market concentration, pricing, landuse of the Towngas Co so far all are likely no change and pressure
E: Bullish economy of HK brings well property & private residental buidling development that boots more sales of Gas
S: Social factors is unlikely essential to the use of gas
T: Technology advancement- an idea for the development of central
LPGas is still just talking at a slow pace
3) Strategic Group is here like CLP, HK Electric, the fragmented LPGas supplies stores.
The market is so high concentrated that is so profitable, there is not neccessary of any price base competition since each has its own market segments