Ergomotion Adjustable Beds - Five Forces Analysis

Ergomotion Adjustable Beds - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (Ergomotion Adjustable Beds) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (Ergomotion Adjustable Beds) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Fast industry growth rate (Ergomotion Adjustable Beds) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (Ergomotion Adjustable Beds) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Critical production inputs are similar (Ergomotion Adjustable Beds) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low concentration of suppliers (Ergomotion Adjustable Beds) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
High competition among suppliers (Ergomotion Adjustable Beds) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (Ergomotion Adjustable Beds) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

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

Bargaining Power of Customers

Buyers require special customization (Ergomotion Adjustable Beds) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (Ergomotion Adjustable Beds) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Ergomotion Adjustable Beds) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (Ergomotion Adjustable Beds) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (Ergomotion Adjustable Beds) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High sunk costs limit competition (Ergomotion Adjustable Beds) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Advanced technologies are required (Ergomotion Adjustable Beds) Advanced technologies make it difficult for new competitors to enter the market because they have to...
High switching costs for customers (Ergomotion Adjustable Beds) High switching costs make it difficult for customers to change which products they normally...
Geographic factors limit competition (Ergomotion Adjustable Beds) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Ergomotion Adjustable Beds) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (Ergomotion Adjustable Beds) 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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