Batik Butik - Five Forces Analysis

Batik Butik - Five Forces Analysis

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Intensity of Existing Rivalry

Low storage costs (Batik Butik) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Large industry size (Batik Butik) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Batik Butik) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

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

Threat of Substitutes

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Substantial product differentiation (Batik Butik) When products and services are very different, customers are less likely to find comparable product...
Substitute product is inferior (Batik Butik) An inferior product means a customer is less likely to switch from Batik Butik to another product or...
Limited number of substitutes (Batik Butik) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (Batik Butik) When customers require special customizations, they are less likely to switch to producers who have...
Limited buyer information availability (Batik Butik) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Low dependency on distributors (Batik Butik) When produces have low dependence, distributors have less bargaining power. Low dependency...
Limited buyer choice (Batik Butik) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Batik Butik) High capital requirements mean a company must spend a lot of money in order to compete in the...
Advanced technologies are required (Batik Butik) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands (Batik Butik) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Batik Butik) High switching costs make it difficult for customers to change which products they normally...
Entry barriers are high (Batik Butik) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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