Porter's Five Forces Analysis Bargaining Power of CustomersIndus Motor Company has a “Customer First” policy (IMC, 2013, p. 49). This means that, for IMC, customers certainly matter to a very high extent, so as far as bargaining power is concerned it can be said with certainty that it is not low. The amount of surveys conducted by IMC also shows how much they value their customers. Given the trust that IMC has given to Pakistani customers to depend on it, customer demand for durable and high quality vehicles (Qeemat, 2012), IMC has some traction as its customer base is quite loyal. But since the switching costs are not too high, be it IMC's biggest competitors or people using other means to avail a vehicle. It is seen that IMC faced a notable decrease when the government allowed the use of used cars for a long period, as well as allowing the use of contraband cars. Sales dropped to an unexpected number. The amount of surveys conducted by IMC also shows how much they value their customers (Nadeem, 2009). Pakistan's economy has not gone through periods where disposable income is sufficient to afford such high quality. It is completely up to the customers if they want to leave the brand and everything that comes with it. Most Pakistani customers who choose Toyota cars are usually those who have the ability to afford a status symbol such as an expensive car (IMC, 2013). Not many people can do this, other than those who live in urban areas. The increase or decrease in the number of sales can show how strong or weak the buyer power is. In the past it has been seen that Toyota will increase prices and the same can be said of its entire family (Dewang, 2013). This is not only due to buyers but also other economic circumstances that can influence such a change, for example... middle of paper... in Pakistan, so yes, IMC has a huge substitute threat in this market at due to the change in government policies, its inability to conduct favorable programs for locally assembled and produced vehicles and the suffering economic situation. Competitive Rivalry The austerity of rivalry towards competitors in the automotive industry across the globe is strong. IMC has two main rivals, Pak Suzuki and Honda Atlas. Pak Suzuki more or less has a monopoly in the Pakistani market (The Express Tribune, 2013) while Honda Atlas offers models which are much cheaper than Indus Motor Company (The Express Tribune, 2013). Even in difficult times, this has astounded analysts with how they've managed to pull it off. So the competitive rivalry is quite strong, but one thing should be kept in mind: all these automakers have their own competitive advantage over each other.