Auto parts - Five Forces Analysis

Auto parts - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (Auto parts) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Fast industry growth rate (Auto parts) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (Auto parts) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

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

Threat of Substitutes

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

Bargaining Power of Customers

Low dependency on distributors (Auto parts) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Auto parts) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Auto parts) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Auto parts) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

Strong brand names are important (Auto parts) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Auto parts) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Geographic factors limit competition (Auto parts) If existing competitors have the best geographical locations, new competitors will have a...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to auto-parts'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 auto-parts's most important five forces statements.