5 Forces Analysis - Five Forces Analysis

5 Forces Analysis - Five Forces Analysis

Last Updated by wbot | Update This Page Now

Intensity of Existing Rivalry

Relatively few competitors (5 Forces Analysis) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Low storage costs (5 Forces Analysis) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Fast industry growth rate (5 Forces Analysis) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (5 Forces Analysis) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Large number of substitute inputs (5 Forces Analysis) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (5 Forces Analysis) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (5 Forces Analysis) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (5 Forces Analysis) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (5 Forces Analysis) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substantial product differentiation (5 Forces Analysis) When products and services are very different, customers are less likely to find comparable product...
Substitute has lower performance (5 Forces Analysis) A lower performance product means a customer is less likely to switch from 5 Forces Analysis to...

Bargaining Power of Customers

Buyers require special customization (5 Forces Analysis) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (5 Forces Analysis) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (5 Forces Analysis) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (5 Forces Analysis) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (5 Forces Analysis) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (5 Forces Analysis) If strong brands are critical to compete, then new competitors will have to improve their brand...
Customers are loyal to existing brands (5 Forces Analysis) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (5 Forces Analysis) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to 5-forces-analysis'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 5-forces-analysis's most important five forces statements.