Airflex - Five Forces Analysis

Airflex - Five Forces Analysis

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Intensity of Existing Rivalry

Exit barriers are low (Airflex) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Low storage costs (Airflex) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Fast industry growth rate (Airflex) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (Airflex) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers (Airflex) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (Airflex) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

High cost of switching to substitutes (Airflex) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Buyers require special customization (Airflex) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (Airflex) When customers cherish particular products they end up paying more for that one product. This...
Low buyer price sensitivity (Airflex) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (Airflex) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong brand names are important (Airflex) If strong brands are critical to compete, then new competitors will have to improve their brand...
Strong distribution network required (Airflex) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Customers are loyal to existing brands (Airflex) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Airflex) High switching costs make it difficult for customers to change which products they normally...

What is Porter's Five Forces Analysis?

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