5280 - Five Forces Analysis

5280 - Five Forces Analysis

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Intensity of Existing Rivalry

Exit barriers are low (5280) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Large industry size (5280) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Large number of substitute inputs (5280) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Low concentration of suppliers (5280) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (5280) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (5280) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Limited number of substitutes (5280) A limited number of substitutes mean that customers cannot easily find other products or services...
Substantial product differentiation (5280) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Low dependency on distributors (5280) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (5280) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (5280) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (5280) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Industry requires economies of scale (5280) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (5280) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to 5280'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 5280's most important five forces statements.