, a well known cosmetics manufacturer, obtains worldwide sales for its global branded products. The directors pride themselves on having a clear understanding of E's consumer market which consists of both men and women. Its products mainly comprise deodorants, perfume, after-shave lotions, facial and body washes.

In carrying out an analysis of its competitive environment, the Marketing Director has applied Porter's Five Forces model and analysed the factors which affect E under each heading as follows.

Threat of entry: Little threat as although major competitors exist, the size of E presents a large entry barrier

Power of buyers: Very important as the customer world wide have much choice from different competitors products.

Power of suppliers: Little threat as most suppliers of materials are small scale and E could easily source from other suppliers if necessary. Labour is relatively cheap in E's production facilities in developing world locations.

Substitute products: There are many alternative products offered by competitors but there is little by way of a substitute for cosmetics, and therefore this poses little threat.

Rivalry among competitors: There is strong competition in the cosmetics market with new products constantly being developed, and theref