Hotel Industry - Five Forces Analysis

Hotel Industry - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Large industry size Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Large number of substitute inputs - Hotel Industry When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Low concentration of suppliers - Hotel Industry A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Critical production inputs are similar (hotel industry) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Inputs have little impact on costs - Hotel Industry When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Low cost of switching suppliers The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Bargaining Power of Customers

Low dependency on distributors When produces have low dependence, distributors have less bargaining power. Low dependency...

Threat of New Competitors

High capital requirements High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Geographic factors limit competition - Hotel Industry If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands - Hotel Industry It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to hotel-industry'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 hotel-industry's most important five forces statements.