Construction Equipment Rental - Five Forces Analysis

Construction Equipment Rental - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

Large number of substitute inputs (Construction Equipment Rental) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Diverse distribution channel (Construction Equipment Rental) The more diverse distribution channels become the less bargaining power a single distributor will...
High competition among suppliers (Construction Equipment Rental) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Construction Equipment Rental) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute is lower quality (Construction Equipment Rental) A lower quality product means a customer is less likely to switch from Construction Equipment Rental...
Substantial product differentiation (Construction Equipment Rental) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (Construction Equipment Rental) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

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

Threat of New Competitors

Advanced technologies are required (Construction Equipment Rental) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Construction Equipment Rental) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Strong distribution network required (Construction Equipment Rental) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Geographic factors limit competition (Construction Equipment Rental) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Construction Equipment Rental) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Construction Equipment Rental) High switching costs make it difficult for customers to change which products they normally...
High learning curve (Construction Equipment Rental) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

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