Arvato2 - Five Forces Analysis

Arvato2 - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Arvato2) When industries are growing revenue quickly, they are less likely to compete, because the total...
Government limits competition (Arvato2) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Arvato2) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Arvato2) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Diverse distribution channel (Arvato2) The more diverse distribution channels become the less bargaining power a single distributor will...
High competition among suppliers (Arvato2) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Large number of substitute inputs (Arvato2) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Volume is critical to suppliers (Arvato2) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute has lower performance (Arvato2) A lower performance product means a customer is less likely to switch from Arvato2 to another...
Substitute is lower quality (Arvato2) A lower quality product means a customer is less likely to switch from Arvato2 to another product or...
Substitute product is inferior (Arvato2) An inferior product means a customer is less likely to switch from Arvato2 to another product or...
Substantial product differentiation (Arvato2) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Buyers require special customization (Arvato2) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Arvato2) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Low dependency on distributors (Arvato2) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Arvato2) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

Strong distribution network required (Arvato2) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Arvato2) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Arvato2) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Arvato2) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Arvato2) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High switching costs for customers (Arvato2) High switching costs make it difficult for customers to change which products they normally...
Geographic factors limit competition (Arvato2) If existing competitors have the best geographical locations, new competitors will have a...
Entry barriers are high (Arvato2) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to arvato2's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up arvato2's most important five forces statements.