ALL ENTRIES - Five Forces Analysis

ALL ENTRIES - Five Forces Analysis

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Intensity of Existing Rivalry

Low storage costs (ALL ENTRIES) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Fast industry growth rate (ALL ENTRIES) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (ALL ENTRIES) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Government limits competition (ALL ENTRIES) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (ALL ENTRIES) Large industries allow multiple firms and produces to prosper without having to steal market share...
Exit barriers are low (ALL ENTRIES) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Large number of substitute inputs (ALL ENTRIES) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Low concentration of suppliers (ALL ENTRIES) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
High competition among suppliers (ALL ENTRIES) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (ALL ENTRIES) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (ALL ENTRIES) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (ALL ENTRIES) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (ALL ENTRIES) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (ALL ENTRIES) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (ALL ENTRIES) A lower performance product means a customer is less likely to switch from ALL ENTRIES to another...
Substitute is lower quality (ALL ENTRIES) A lower quality product means a customer is less likely to switch from ALL ENTRIES to another...
Substitute product is inferior (ALL ENTRIES) An inferior product means a customer is less likely to switch from ALL ENTRIES to another product or...
Substantial product differentiation (ALL ENTRIES) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (ALL ENTRIES) A limited number of substitutes mean that customers cannot easily find other products or services...
High cost of switching to substitutes (ALL ENTRIES) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

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

Threat of New Competitors

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

What is Porter's Five Forces Analysis?

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