Fender - Five Forces Analysis

Fender - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Fender) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Fender) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Fast industry growth rate (Fender) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Large number of substitute inputs (Fender) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Fender) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Fender) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (Fender) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Fender) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Critical production inputs are similar (Fender) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

High cost of switching to substitutes (Fender) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

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

Threat of New Competitors

Strong distribution network required (Fender) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Fender) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Fender) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Fender) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Fender) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Fender) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High learning curve (Fender) When the learning curve is high, new competitors must spend time and money studying the market...
Customers are loyal to existing brands (Fender) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to fender'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 fender's most important five forces statements.