I dont think your analysis is necessarily bad, for a student...

I dont think your analysis is necessarily bad, for a student taking financial statement analysis at uni that is. in the vein of just going from uni textbooks however, lets go back to Porters 5 forces:

Competition in the industry - yeahhhh. nahh. the major players are set up: Z1P and APT, and other were very fortunate to get their foot in the door (klarna etc.) but only Z1P is the major bnpl player that goes beyond the 4 installments. As a Z1p customer currently, I have no urge to try apt again let alone install another app and use some other app (this was my original primer to considering investing in zip).

Potential of new entrants into the industry - as per above, i dont think so - we will likely see maybe a few more entrants, but i dont think we will ever see Doge pay - this aint crypto: the barriers of entry, implicit and explicit, are huge. I would really like to see the stats of people who use apt but not zip and those who use zip but not apt, i suspect it will lean a certain way.

Power of suppliers - NA. perhaps the funding? share dilution and rising interest rates can be problematic sure. I see these interest rate free products as a pseudo hedge against rising rates - those with floating rate products such as mortgages, personal loans and CCs will use the cheapest possible alternatives all things being equal. Yes shorter term share price wise this will be an unavoidable impact.

Power of customers - again, have fun downloading another/new app once your in the habit of using the other one that's already available in most other stores. Or you can use your interest bearing CC (of course they can/"should" use cash, but life happens as do unexpected expenses).

Threat of substitute products - good luck starting a brand to compete against the established players. Even some of the established brands: hands up anyone who has used paypal as a bnpl? someone? whoop was that a hand? no just scratching your eye? okay....

what you end up with is large premiums for a market leader. oh and also growth. lots of growth to come.