Adidas originalss - Five Forces Analysis

Adidas originalss - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Adidas originalss) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Adidas originalss) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (Adidas originalss) 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 originalss) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (Adidas originalss) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (Adidas originalss) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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

Bargaining Power of Customers

Buyers require special customization (Adidas originalss) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Adidas originalss) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Low dependency on distributors (Adidas originalss) When produces have low dependence, distributors have less bargaining power. Low dependency...
Limited buyer information availability (Adidas originalss) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Product is important to customer (Adidas originalss) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Adidas originalss) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Adidas originalss) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

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

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