AUTOsmart - Five Forces Analysis

AUTOsmart - Five Forces Analysis

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Intensity of Existing Rivalry

Exit barriers are low (AUTOsmart ) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Large industry size (AUTOsmart ) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers (AUTOsmart ) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (AUTOsmart ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (AUTOsmart ) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Diverse distribution channel (AUTOsmart ) The more diverse distribution channels become the less bargaining power a single distributor will...

Threat of Substitutes

Bargaining Power of Customers

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

Threat of New Competitors

Industry requires economies of scale (AUTOsmart ) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (AUTOsmart ) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

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