The industry's product is pretty much the same from seller to seller.
• The marketplace is dominated by price competition (buyers are prone to
shop for the lowest price).
• There are only a few ways to achieve product differentiation that have
much value to buyers.
• Most buyers use the product in the same ways and thus have common
user requirements.
• Buyers' costs in switching from one seller or brand to another are low (or
even zero).
• Buyers are large and have significant bargaining power.