123578 - Five Forces Analysis

123578 - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Bargaining Power of Suppliers

Large number of substitute inputs (123578) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Low concentration of suppliers (123578) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...

Threat of Substitutes

Substitute has lower performance (123578) A lower performance product means a customer is less likely to switch from 123578 to another product...
Substitute is lower quality (123578) A lower quality product means a customer is less likely to switch from 123578 to another product or...
Substitute product is inferior (123578) An inferior product means a customer is less likely to switch from 123578 to another product or...
Substantial product differentiation (123578) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (123578) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (123578) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (123578) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (123578) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Limited buyer information availability (123578) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Low dependency on distributors (123578) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (123578) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (123578) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (123578) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

Industry requires economies of scale (123578) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Strong brand names are important (123578) If strong brands are critical to compete, then new competitors will have to improve their brand...
Low switching costs (123578) Please edit this page to add a description…
Geographic factors limit competition (123578) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (123578) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (123578) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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