Cable Industry - Five Forces Analysis

Cable Industry - Five Forces Analysis

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Intensity of Existing Rivalry

Government limits competition (Cable Industry) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Cable Industry) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Cable Industry) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

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

Threat of Substitutes

Substitute product is inferior (Cable Industry) An inferior product means a customer is less likely to switch from Cable Industry to another product...
High cost of switching to substitutes (Cable Industry) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (Cable Industry) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

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

Threat of New Competitors

High sunk costs limit competition (Cable Industry) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong distribution network required (Cable Industry) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Cable Industry) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Cable Industry) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Cable Industry) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Cable Industry) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Cable Industry) If existing competitors have the best geographical locations, new competitors will have a...
High learning curve (Cable Industry) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Cable Industry) 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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