Imperial Tobacco - Five Forces Analysis

Imperial Tobacco - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Imperial Tobacco) Large industries allow multiple firms and produces to prosper without having to steal market share...
Government limits competition (Imperial Tobacco) Government policies and regulations can dictate the level of competition within the industry. When...

Bargaining Power of Suppliers

High competition among suppliers (Imperial Tobacco) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (Imperial Tobacco) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Bargaining Power of Customers

Limited buyer information availability (Imperial Tobacco) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Large number of customers (Imperial Tobacco) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Product is important to customer (Imperial Tobacco) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

Strong distribution network required (Imperial Tobacco) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Imperial Tobacco) If strong brands are critical to compete, then new competitors will have to improve their brand...
Patents limit new competition (Imperial Tobacco) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Imperial Tobacco) 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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