II CA - Five Forces Analysis

II CA - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

Large number of substitute inputs (II CA) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (II CA) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Inputs have little impact on costs (II CA) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Low cost of switching suppliers (II CA) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

High cost of switching to substitutes (II CA) Limited number of substitutes means that customers cannot easily switch to other products or...
Substantial product differentiation (II CA) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

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

Threat of New Competitors

High capital requirements (II CA) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (II CA) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Strong brand names are important (II CA) If strong brands are critical to compete, then new competitors will have to improve their brand...
Geographic factors limit competition (II CA) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (II CA) 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?

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