Children Apparel - Five Forces Analysis

Children Apparel - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Children Apparel) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (Children Apparel) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers (Children Apparel) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Large number of substitute inputs (Children Apparel) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Diverse distribution channel (Children Apparel) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (Children Apparel) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Children Apparel) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Children Apparel) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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

Bargaining Power of Customers

Low dependency on distributors (Children Apparel) When produces have low dependence, distributors have less bargaining power. Low dependency...
Large number of customers (Children Apparel) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Product is important to customer (Children Apparel) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

Strong distribution network required (Children Apparel) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Children Apparel) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Children Apparel) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High learning curve (Children Apparel) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Children Apparel) 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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