Han - Five Forces Analysis

Han - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Han) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (Han) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Critical production inputs are similar (Han) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Han) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Han) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
High competition among suppliers (Han) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...

Threat of Substitutes

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

Bargaining Power of Customers

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

Threat of New Competitors

Strong distribution network required (Han) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Han) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (Han) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Advanced technologies are required (Han) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Entry barriers are high (Han) When barriers are high, it is more difficult for new competitors to enter the market. High entry...
Patents limit new competition (Han) Patents that cover vital technologies make it difficult for new competitors, because the best...
Strong brand names are important (Han) If strong brands are critical to compete, then new competitors will have to improve their brand...

What is Porter's Five Forces Analysis?

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