Gem Consulting - Five Forces Analysis

Gem Consulting - Five Forces Analysis

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Intensity of Existing Rivalry

Low storage costs (Gem Consulting) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Government limits competition (Gem Consulting) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Gem Consulting) Large industries allow multiple firms and produces to prosper without having to steal market share...
Exit barriers are low (Gem Consulting) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Fast industry growth rate (Gem Consulting) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (Gem Consulting) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Large number of substitute inputs (Gem Consulting) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Gem Consulting) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (Gem Consulting) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (Gem Consulting) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Gem Consulting) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (Gem Consulting) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Gem Consulting) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Gem Consulting) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (Gem Consulting) A lower performance product means a customer is less likely to switch from Gem Consulting to another...
Substitute is lower quality (Gem Consulting) A lower quality product means a customer is less likely to switch from Gem Consulting to another...
Substitute product is inferior (Gem Consulting) An inferior product means a customer is less likely to switch from Gem Consulting to another product...
Substantial product differentiation (Gem Consulting) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (Gem Consulting) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (Gem Consulting) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Limited buyer information availability (Gem Consulting) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Buyers require special customization (Gem Consulting) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Gem Consulting) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Low dependency on distributors (Gem Consulting) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Gem Consulting) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Gem Consulting) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Gem Consulting) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

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