IBM AklUni Team 6 - Five Forces Analysis

IBM AklUni Team 6 - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (IBM AklUni Team 6) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Fast industry growth rate (IBM AklUni Team 6) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (IBM AklUni Team 6) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Critical production inputs are similar (IBM AklUni Team 6) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (IBM AklUni Team 6) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Inputs have little impact on costs (IBM AklUni Team 6) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....

Threat of Substitutes

Substantial product differentiation (IBM AklUni Team 6) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (IBM AklUni Team 6) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (IBM AklUni Team 6) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (IBM AklUni Team 6) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (IBM AklUni Team 6) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (IBM AklUni Team 6) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (IBM AklUni Team 6) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (IBM AklUni Team 6) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (IBM AklUni Team 6) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (IBM AklUni Team 6) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (IBM AklUni Team 6) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (IBM AklUni Team 6) High switching costs make it difficult for customers to change which products they normally...
High learning curve (IBM AklUni Team 6) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (IBM AklUni Team 6) 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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