As an industry moves from the growth stage into the mature phase of the life cycle, and consolidation (i.e. acquisitions of smaller players by larger players) begins, explain how EACH of Porter’s five forces are likely to change and the effect that this will have on competition and profitability.

1. Supplier Power (Bargaining) - There are many effects that this force would have on the industry.
-Change: The potential changes that this force would have on the industry is the fact that suppliers could look at the situation being the industry is in the mature phase while implementing smaller players and take advantage where they see fit. For example, perhaps with the merge the suppliers if highly demanded could increase price as they see the potential of the merge being successful and highly profitable to the industry. On another note, if there are many options that are fairly considerable perhaps the current supplier could lose bargaining power if it is discovered through the acquisition by the industry that there are better and inexpensive other suppliers available.
-Competition and Profitability: The effect that this could have on completion and profitability is if the supplier is one of very few with the best materials this could result in competition being stirred within the suppliers market if other suppliers feel that they can match or exceed current standings. On the other hand, it could result in the supplier changes inputs/outputs, distribution, and even labor unions as it is now more than one company seeking out a potential suppliers which essentially results in profitability changes.

So, the effects of competition can go either way when considering supplier power. The supplier can benefits extensively if they are the only supplier or the best for the products. However, with the acquisition if there are already partnerships with other reliable