Cloud computing services - Five Forces Analysis

Cloud computing services - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Cloud computing services) Large industries allow multiple firms and produces to prosper without having to steal market share...
Government limits competition (Cloud computing services) Government policies and regulations can dictate the level of competition within the industry. When...
Low storage costs (Cloud computing services) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Relatively few competitors (Cloud computing services) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (Cloud computing services) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Large number of substitute inputs (Cloud computing services) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Cloud computing services) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (Cloud computing services) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (Cloud computing services) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Cloud computing services) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (Cloud computing services) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Cloud computing services) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Cloud computing services) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (Cloud computing services) A lower performance product means a customer is less likely to switch from Cloud computing services...
Substitute is lower quality (Cloud computing services) A lower quality product means a customer is less likely to switch from Cloud computing services to...
Substantial product differentiation (Cloud computing services) When products and services are very different, customers are less likely to find comparable product...
Substitute product is inferior (Cloud computing services) An inferior product means a customer is less likely to switch from Cloud computing services to...
High cost of switching to substitutes (Cloud computing services) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (Cloud computing services) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (Cloud computing services) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Cloud computing services) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Low dependency on distributors (Cloud computing services) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Cloud computing services) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Cloud computing services) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Cloud computing services) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Cloud computing services) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong distribution network required (Cloud computing services) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High sunk costs limit competition (Cloud computing services) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Cloud computing services) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Cloud computing services) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Geographic factors limit competition (Cloud computing services) If existing competitors have the best geographical locations, new competitors will have a...
Patents limit new competition (Cloud computing services) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Cloud computing services) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (Cloud computing services) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Cloud computing services) 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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