$1.$ identify the most important two or three Key Success Factors. Write one paragraph arguing your conclusion for each KSF identified.

$$E$-$commerce Growth: New market entrants may find it challenging to create effective distribution channels, although there are opportunities via online retail. Barriers to entry: Considerable financial resources are necessary for research, development, and manufacturing. Brand loyalty: Strong brand loyalty exists among leading companies such as Wilson and Babolat, creating a hurdle for new entrants. $2$ Bargaining Power of Suppliers Medium to high Diverse Raw Material Suppliers: The availability of multiple suppliers for raw materials $($e$.$g$.,$ graphite, aluminum, carbon fiber$)$ reduces individual suppliers' power. Manufacturers can choose from various sources, making switching easier if necessary. Some essential materials used in tennis equipment, such as high$-$performance strings $($like natural gut or advanced synthetic materials$)$ and composites $($like carbon fiber and graphite$),$ are supplied by a limited number of specialized manufacturers. This concentration grants these suppliers significant bargaining power. Tennis equipment manufacturers often seek high$-$quality inputs that enhance performance. Only a few suppliers provide these superior materials, and manufacturers depend on them, increasing the suppliers' leverage. Specialized Machinery Due to their expertise and the unique nature of their products, specialized machinery and equipment suppliers have moderate bargaining power. Global Software Suppliers: The global availability of technology and software suppliers contributes to a competitive environment, allowing manufacturers to negotiate better terms. This generally weakens supplier power in this area. Marketing and Distribution Services: The need for specialized marketing and distribution services gives these suppliers higher bargaining power. Their expertise can significantly impacts a manufacturer$$s market presence and effectiveness. $3$ Bargaining Power of Buyers Moderate to High Elite athletes often possess significant leverage when negotiating sponsorship agreements. It is moderate because consumers are presented with various brands, such as Wilson, Head, and Babolat, enhancing their selection options. Recreational $/$casual players tend to be sensitive to pricing, yet they exert less influence on the overall pricing dynamics within the industry. It can be high because retailers and bulk purchasers can exert significant influence over manufacturers, especially when purchasing large quantities, further increasing the bargaining power. $4$ Threat of Substitutes High Various sports, such as pickleball, badminton, and even running or golf, provide recreational options. Notably, pickleball is experiencing rapid growth owing to its affordability in equipment and ease of access. Product Alternatives: various types of tennis equipment $($e$.$g$.,$ different brands of rackets, strings, and footwear$)$ can be seen as substitutes for each other within the tennis market itself; consumers may switch brands or types based on price, performance, or personal preference Price Sensitivity: If prices for tennis equipment rise, consumers may seek substitutes that offer similar experiences at a lower cost, further increasing the threat. The increasing popularity of alternative fitness options, such as gym workouts, cycling, and home fitness programs, can divert consumer interest away from tennis. $5.$ Industry Rivalry High Significant rivalry among leading brands exists, and ongoing technological advancements characterize this. The recreational equipment market is experiencing aggressive price reductions, particularly for rackets and balls. The presence of multiple brands leads to aggressive pricing strategies, including discounts and promotional offers, which intensify competition further. Companies actively participate in extensive marketing campaigns and sponsor prominent tennis tournaments to enhance their market presence.