2tooo - Five Forces Analysis

2tooo - Five Forces Analysis

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Intensity of Existing Rivalry

Government limits competition (2tooo) Government policies and regulations can dictate the level of competition within the industry. When...
Exit barriers are low (2tooo) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Low concentration of suppliers (2tooo) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Inputs have little impact on costs (2tooo) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (2tooo) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (2tooo) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Volume is critical to suppliers (2tooo) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Limited number of substitutes (2tooo) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Large number of customers (2tooo) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Product is important to customer (2tooo) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

Strong distribution network required (2tooo) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Advanced technologies are required (2tooo) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (2tooo) Economies of scale help producers to lower their cost by producing the next unit of output at lower...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to 2tooo's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up 2tooo's most important five forces statements.