Fairwood - Five Forces Analysis

Fairwood - Five Forces Analysis

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Intensity of Existing Rivalry

Bargaining Power of Suppliers

Inputs have little impact on costs (Fairwood) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Low cost of switching suppliers (Fairwood) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Low concentration of suppliers (Fairwood) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...

Threat of Substitutes

Bargaining Power of Customers

Threat of New Competitors

Strong distribution network required (Fairwood) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Fairwood) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Fairwood) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Entry barriers are high (Fairwood) When barriers are high, it is more difficult for new competitors to enter the market. High entry...
Industry requires economies of scale (Fairwood) Economies of scale help producers to lower their cost by producing the next unit of output at lower...

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