ALGT - Five Forces Analysis

ALGT - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (ALGT) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Large industry size (ALGT) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers (ALGT) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Critical production inputs are similar (ALGT) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low concentration of suppliers (ALGT) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Volume is critical to suppliers (ALGT) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

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

Bargaining Power of Customers

Buyers require special customization (ALGT) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (ALGT) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (ALGT) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (ALGT) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (ALGT) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (ALGT) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (ALGT) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (ALGT) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (ALGT) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (ALGT) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (ALGT) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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