Wednesday, December 21, 2011

Rival companies


In Estonia there are no companies, which offer materials recycled from e-waste.  There are companies, which offer scrap metals recycled from construction waste, and production firms with scrap metal leftovers. [1] It seems that indeed there are no specialized e-waste recycling companies active in Estonia.

As the number of competing businesses in Estonia is low, the rivalry in the E-waste industry in Estonia is also low.
(Source: [2])
 The demand for e-waste recycling is large and increasing rapidly. This decreases the rivalry among competitors as well because there is a large market to share between a limited amount of companies and a limited amount of recycling capacity.

The flexibility of price is limited for raw metals due to the determination of this price by the international metal indices. However, the switching costs for customers are low. If the metal prices would drop or the supplies would surpass the demands, the customers could easily switch to another supplier.
(Source: [3])
 When the costs are higher to get out of a business than to stay in and compete, the rivalry tends to be more vigorous, for E-waste recycling this does not apply, the equipment used for e-waste recycling can easily be used for other purposes.

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