1. Threats from new entrants

As indispensable and important accessories in products and equipment, the procurement proportion of row pin, row bus, row pin and row bus, and board to board connector in many product application fields has exceeded 8% of the total procurement cost. In addition, compared with other key components, connector products have a wider range of choices and larger local procurement space, so its industry entry barriers are not high. Barriers to entry mainly exist in product differentiation advantages and economies of scale, while there are no special requirements for sales channels, capital demand, conversion costs, cost advantages, etc. However, the vitality of the connector market and the high growth potential of communication in the railway, energy industry, machinery industry, etc. are attracting more and more new entrants.

2. Threat of substitutes

The main substitute for the connector is the terminal block. In the middle and high-end market, the connector is not threatened by substitutes. This is mainly because the connector itself is developed from the terminal block to facilitate and quickly plug and unplug cables without error. In the middle and low end markets, connectors are threatened by substitutes. When the buyer is under the pressure of cost, he will choose the terminal blocks with ordinary quality and low cost.

3. Buyer's bargaining power

The buyer of connector is a manufacturer of products and equipment, and the buyer's concentration is high: the proportion of products purchased by the buyer from the industry in its total cost is about 10%; The standardization degree of the buyer's purchase from the industry is improving: the profitability of the buyer is decreasing; The Buyer is capable of backward integration; The information of both parties is more transparent; All this makes the buyer's bargaining power higher and higher.

4. Bargaining ability of suppliers

Suppliers of connectors are aluminum, copper, silver, gold and other suppliers; Suppliers of raw materials such as engineering plastics. The concentration and standardization of the seller's industry are high; The transaction volume of house purchase is very large; The degree of product differentiation is very small; The cost of converting the seller is relatively small; The possibility of forward integration is small; The information of both parties is quite transparent; In general, the bargaining power of the seller is relatively low, and the existing enterprises can still maintain a considerable profit space between the buyer and the seller.