Barnes and Noble - Five Forces Analysis

Barnes and Noble - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Fast industry growth rate (Barnes and Noble) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Volume is critical to suppliers (Barnes and Noble) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Critical production inputs are similar (Barnes and Noble) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
High competition among suppliers (Barnes and Noble) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...

Threat of Substitutes

Substantial product differentiation (Barnes and Noble) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

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

Threat of New Competitors

Strong distribution network required (Barnes and Noble) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Barnes and Noble) If strong brands are critical to compete, then new competitors will have to improve their brand...
Customers are loyal to existing brands (Barnes and Noble) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Advanced technologies are required (Barnes and Noble) Advanced technologies make it difficult for new competitors to enter the market because they have to...

What is Porter's Five Forces Analysis?

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