Five Forces ID - Five Forces Analysis

Five Forces ID - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (Five Forces ID) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Large industry size (Five Forces ID) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers (Five Forces ID) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (Five Forces ID) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (Five Forces ID) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Five Forces ID) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....

Threat of Substitutes

Substantial product differentiation (Five Forces ID) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (Five Forces ID) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (Five Forces ID) When customers require special customizations, they are less likely to switch to producers who have...
Limited buyer information availability (Five Forces ID) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Product is important to customer (Five Forces ID) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (Five Forces ID) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Five Forces ID) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Five Forces ID) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Five Forces ID) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Five Forces ID) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Five Forces ID) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Five Forces ID) If existing competitors have the best geographical locations, new competitors will have a...
Entry barriers are high (Five Forces ID) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

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