555 - Five Forces Analysis

555 - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (555) When industries are growing revenue quickly, they are less likely to compete, because the total...
Government limits competition (555) Government policies and regulations can dictate the level of competition within the industry. When...
Relatively few competitors (555) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

High competition among suppliers (555) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (555) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Critical production inputs are similar (555) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

Substitute is lower quality (555) A lower quality product means a customer is less likely to switch from 555 to another product or...
Substantial product differentiation (555) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Low buyer price sensitivity (555) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (555) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Low dependency on distributors (555) When produces have low dependence, distributors have less bargaining power. Low dependency...

Threat of New Competitors

Strong brand names are important (555) If strong brands are critical to compete, then new competitors will have to improve their brand...
High sunk costs limit competition (555) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Advanced technologies are required (555) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands (555) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (555) 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 555'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 555's most important five forces statements.