123456 - Five Forces Analysis

123456 - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (123456) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (123456) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (123456) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Low storage costs (123456) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Fast industry growth rate (123456) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

High competition among suppliers (123456) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (123456) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (123456) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (123456) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (123456) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute is lower quality (123456) A lower quality product means a customer is less likely to switch from 123456 to another product or...
Substitute has lower performance (123456) A lower performance product means a customer is less likely to switch from 123456 to another product...
Substitute product is inferior (123456) An inferior product means a customer is less likely to switch from 123456 to another product or...
Substantial product differentiation (123456) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (123456) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (123456) When customers require special customizations, they are less likely to switch to producers who have...
Low dependency on distributors (123456) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (123456) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (123456) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong brand names are important (123456) If strong brands are critical to compete, then new competitors will have to improve their brand...
High learning curve (123456) When the learning curve is high, new competitors must spend time and money studying the market...
Customers are loyal to existing brands (123456) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Advanced technologies are required (123456) Advanced technologies make it difficult for new competitors to enter the market because they have to...

What is Porter's Five Forces Analysis?

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