Gossip - Five Forces Analysis

Gossip - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Gossip ) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (Gossip ) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Diverse distribution channel (Gossip ) The more diverse distribution channels become the less bargaining power a single distributor will...
High competition among suppliers (Gossip ) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Gossip ) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (Gossip ) A lower performance product means a customer is less likely to switch from **Gossip ** to another...
Substitute is lower quality (Gossip ) A lower quality product means a customer is less likely to switch from **Gossip ** to another...
Substitute product is inferior (Gossip ) An inferior product means a customer is less likely to switch from **Gossip ** to another product or...

Bargaining Power of Customers

Large number of customers (Gossip ) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Buyers require special customization (Gossip ) When customers require special customizations, they are less likely to switch to producers who have...

Threat of New Competitors

Strong distribution network required (Gossip ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Gossip ) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Gossip ) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Gossip ) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (Gossip ) 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 gossip'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 gossip's most important five forces statements.