Horma - Five Forces Analysis

Horma - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Horma) When industries are growing revenue quickly, they are less likely to compete, because the total...
Government limits competition (Horma) Government policies and regulations can dictate the level of competition within the industry. When...
Relatively few competitors (Horma) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

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

Threat of Substitutes

Substitute has lower performance (Horma) A lower performance product means a customer is less likely to switch from Horma to another product...
Substitute is lower quality (Horma) A lower quality product means a customer is less likely to switch from Horma to another product or...
High cost of switching to substitutes (Horma) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Low buyer price sensitivity (Horma) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (Horma) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Product is important to customer (Horma) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

High sunk costs limit competition (Horma) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Horma) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Horma) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Horma) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Horma) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (Horma) When the learning curve is high, new competitors must spend time and money studying the market...
High switching costs for customers (Horma) High switching costs make it difficult for customers to change which products they normally...

What is Porter's Five Forces Analysis?

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