Adidas original - Five Forces Analysis

Adidas original - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Fast industry growth rate (Adidas original) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (Adidas original) Large industries allow multiple firms and produces to prosper without having to steal market share...
Exit barriers are low (Adidas original) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Inputs have little impact on costs (Adidas original) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (Adidas original) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (Adidas original) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute is lower quality (Adidas original) A lower quality product means a customer is less likely to switch from Adidas original to another...
Substitute product is inferior (Adidas original) An inferior product means a customer is less likely to switch from Adidas original to another...
Limited number of substitutes (Adidas original) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Large number of customers (Adidas original) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Adidas original) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Adidas original) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Adidas original) If strong brands are critical to compete, then new competitors will have to improve their brand...
Patents limit new competition (Adidas original) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Adidas original) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Adidas original) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

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