Generators and turbines - Five Forces Analysis

Generators and turbines - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

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

Threat of Substitutes

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

Bargaining Power of Customers

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

Threat of New Competitors

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