Family food centre - Five Forces Analysis

Family food centre - Five Forces Analysis

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Intensity of Existing Rivalry

Low storage costs (Family food centre ) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Government limits competition (Family food centre ) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Family food centre ) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Family food centre ) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Large number of substitute inputs (Family food centre ) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Family food centre ) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Inputs have little impact on costs (Family food centre ) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Volume is critical to suppliers (Family food centre ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Family food centre ) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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

Bargaining Power of Customers

Buyers require special customization (Family food centre ) When customers require special customizations, they are less likely to switch to producers who have...
Limited buyer information availability (Family food centre ) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Product is important to customer (Family food centre ) When customers cherish particular products they end up paying more for that one product. This...
Low dependency on distributors (Family food centre ) When produces have low dependence, distributors have less bargaining power. Low dependency...
Large number of customers (Family food centre ) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Family food centre ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Family food centre ) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Family food centre ) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Family food centre ) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Patents limit new competition (Family food centre ) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Family food centre ) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Family food centre ) High switching costs make it difficult for customers to change which products they normally...
Entry barriers are high (Family food centre ) 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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