5 Forces Cons - Five Forces Analysis

5 Forces Cons - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (5 Forces Cons) Large industries allow multiple firms and produces to prosper without having to steal market share...
Exit barriers are low (5 Forces Cons) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Volume is critical to suppliers (5 Forces Cons) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substantial product differentiation (5 Forces Cons) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (5 Forces Cons) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (5 Forces Cons) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (5 Forces Cons) When customers require special customizations, they are less likely to switch to producers who have...
Low dependency on distributors (5 Forces Cons) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (5 Forces Cons) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

Strong brand names are important (5 Forces Cons) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (5 Forces Cons) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (5 Forces Cons) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (5 Forces Cons) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (5 Forces Cons) High switching costs make it difficult for customers to change which products they normally...
High learning curve (5 Forces Cons) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

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