Quick question about ACCA article ' Business Strategy…

Hi All,

I have a question about a section in this article: https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/p5/technical-articles/business-strategy-performance-models.html

Example 1 and Answer no:

7: “The number of industrial firms setting up in Eajland is increasing by 10% per annum. bargaining power of buyers”

Why do they classify this as a bargaining power of buyers? I would say that more companies are entering the market which can be potential customers so the bargaining power of buyers is decreasing? More customers, easier to switch and sell products. right??

6. Other launderettes within the community regularly offer free cleaning, or high discounts on the cleaning of clothing items. threat of entry – differentiation

I would classify this as Competitive Rivalry (intensifies through differentiation). Why it is Threat of Entry ???

3. A large number of businesses spend large amounts of money on cleaning employees’ work-wear each week. high bargaining power of buyers

Why it is high bargaining power of buyers? If there is a large number of customers and they spend a lot of money on a service it means that they need it desperately. So I would assume that their bargaining power is low because the Supplier can easily switch between them.

??? Your thoughts would be useful.

Thank you