Burts Chips - Five Forces Analysis

Burts Chips - Five Forces Analysis

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Intensity of Existing Rivalry

High levels of competitors (Burts Chips) Please edit this page to add a description…
Large industry size (Burts Chips) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Burts Chips) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Large number of substitute inputs (Burts Chips) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Burts Chips) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Burts Chips) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Critical production inputs are similar (Burts Chips) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

Substitute is lower quality (Burts Chips) A lower quality product means a customer is less likely to switch from Burts Chips to another...
Substitute product is inferior (Burts Chips) An inferior product means a customer is less likely to switch from Burts Chips to another product or...

Bargaining Power of Customers

Low buyer price sensitivity (Burts Chips) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (Burts Chips) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Burts Chips) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Burts Chips) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Burts Chips) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Burts Chips) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (Burts Chips) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Burts Chips) 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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