APPLe Industry - Five Forces Analysis

APPLe Industry - Five Forces Analysis

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Intensity of Existing Rivalry

Bargaining Power of Suppliers

High competition among suppliers (APPLe Industry) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Inputs have little impact on costs (APPLe Industry) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (APPLe Industry) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (APPLe Industry) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Limited number of substitutes (APPLe Industry) A limited number of substitutes mean that customers cannot easily find other products or services...
Substantial product differentiation (APPLe Industry) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Limited buyer information availability (APPLe Industry) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Product is important to customer (APPLe Industry) When customers cherish particular products they end up paying more for that one product. This...
Buyers require special customization (APPLe Industry) When customers require special customizations, they are less likely to switch to producers who have...

Threat of New Competitors

High sunk costs limit competition (APPLe Industry) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
High capital requirements (APPLe Industry) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (APPLe Industry) If strong brands are critical to compete, then new competitors will have to improve their brand...
Geographic factors limit competition (APPLe Industry) If existing competitors have the best geographical locations, new competitors will have a...
High switching costs for customers (APPLe Industry) High switching costs make it difficult for customers to change which products they normally...
High learning curve (APPLe Industry) 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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