Bargain power of customer revealing the industry attractiveness. Customers can divide in two fields. Common individual customers and corporate customers.

Corporate customer are those who purchase agriculture products and services in bulk and resale it to individual customers or exporting them to other countries, such as seed and agriculture machinery to African countries and to Afghanistan etc. bargain power of corporate customers is low because of less numbers of customers and low contractual price at the time of agreement.

Individual customers are the real customers of agricultural products and services. They are large in numbers, though they purchase in fewer amounts but because of large number of them, they have the bargain power because of large numbers of seed agriculture equipment firms. But in fertilizer case, they have low power of bargaining as customer because of less number of companies.

Bargain power of individual has been increased in recent years because of numbers of private firms invested in agriculture industry. So the customers can switch easily from one firm to another firm because of low switching cost.

But still individual customers have low power of bargaining as customer.

Threat of new entrance:

Existing firms have always fears about the new entrants in the industry. Existing firms creates some barriers to prevent new entrants or creates difficulties for new entrants.

Agriculture industry requires highly skilled human resource in different sectors, such as in seed production, fertilizer sector etc

Entry barriers can be followings:

v  Highly skilled human resource (agriculture researchers)

v  Availability of resources and acquiring of distribution channels.

v  Industrial relations.

v  Hiring of technical human resource.

Agriculture industry also depends upon the research (R&D), which produces quality seeds and information about the agriculture equipment requirements

The new entrants can enters in agriculture industry with fewer barriers, because of less number of suppliers and manufactures.

So it can rightly be said that threat of new entrants is high for existing firms because of attractiveness and opportunities in agriculture industry.