IKEA CHILE - Five Forces Analysis

IKEA CHILE - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (IKEA CHILE) Large industries allow multiple firms and produces to prosper without having to steal market share...
Exit barriers are low (IKEA CHILE) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Fast industry growth rate (IKEA CHILE) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Volume is critical to suppliers (IKEA CHILE) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Large number of substitute inputs (IKEA CHILE) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Critical production inputs are similar (IKEA CHILE) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

Substantial product differentiation (IKEA CHILE) When products and services are very different, customers are less likely to find comparable product...
Substitute product is inferior (IKEA CHILE) An inferior product means a customer is less likely to switch from IKEA CHILE to another product or...

Bargaining Power of Customers

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

Threat of New Competitors

High learning curve (IKEA CHILE) When the learning curve is high, new competitors must spend time and money studying the market...
Customers are loyal to existing brands (IKEA CHILE) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High capital requirements (IKEA CHILE) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (IKEA CHILE) 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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