Five Forces Analysis The sector analyzed is tobacco. The tobacco industry produces cigarettes, snuff, chewing tobacco, etc. Clients. Customers are wholesalers and retailers of tobacco products. There are a lot of customers in this industry, which makes the customers not very powerful.b. I believe customers shop in high volume, which would make them powerful.c. Purchases made by customers in the industry are the same as the amount spent on items from other industries. This causes the client to have moderate power.d. The products that customers buy are differentiated because customers sell to people who want a certain brand of cigarettes, snuff, etc., forcing customers to buy from a specific company that sells those brands. This weakens the power of the customer. And. I believe there is a wide variety of customers and therefore the profitability of each customer varies. Customers who earn low profits are under pressure to keep the costs of their purchases low. This type of customer would be powerful. On the other hand, customers who earn high profits do not care about the costs of their purchases, which makes them less powerful. Overall, when it comes to customers profiting from this industry, they would have moderate power. Customers can easily get accurate information about the sales industry. This gives the customer the power when it is time to negotiate the cost of the products.g. Customers cannot easily vertically integrate backwards and become their own suppliers. It would be too difficult for a wholesaler or retailer to start producing tobacco products. This makes customers not very powerful.h. Customers can easily switch from one seller to another becoming powerful.i. Overall, I think customers have a moderate amount of power. Suppliers. The suppliers are the tobacco farmers. There are few vendors which makes them very powerful.b. There are few substitutes for the supplied product, which makes suppliers very powerful.c. Top...... middle of the sheet...... a. There are few substitutes for the tobacco industry. However, the substitutes they have are readily available. The two available substitutes are chewing gum and the nicotine patch. Fortunately for the industry, customers do not promote these items as alternatives to tobacco and therefore do not pose a threat to the industry. The above analysis indicates the following: existing customer and competitive forces are moderate, supplier strength is strong, and the threat of potential competitors and substitutes is weak.b. This is a moderately difficult industry in which to compete with existing competitors due to the pressure of keeping costs low and keeping up with technology.c. This would not be a good industry for a new company to enter due to extremely difficult barriers to entry. I expect existing competing companies to achieve high profits and sales growth, because tobacco sells itself. As long as companies in this sector keep up with technology and marketing, they will see an increase in their sales, especially abroad.