E-zone - Five Forces Analysis

E-zone - Five Forces Analysis

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Intensity of Existing Rivalry

Low storage costs (E-zone) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Fast industry growth rate (E-zone) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (E-zone) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Critical production inputs are similar (E-zone) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Large number of substitute inputs (E-zone) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Diverse distribution channel (E-zone) The more diverse distribution channels become the less bargaining power a single distributor will...

Threat of Substitutes

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

Bargaining Power of Customers

Product is important to customer (E-zone) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (E-zone) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (E-zone) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (E-zone) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Customers are loyal to existing brands (E-zone) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (E-zone) High switching costs make it difficult for customers to change which products they normally...
High learning curve (E-zone) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to e-zone's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up e-zone's most important five forces statements.