ITEP - Five Forces Analysis

ITEP - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (ITEP) Large industries allow multiple firms and produces to prosper without having to steal market share...
Low storage costs (ITEP) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...

Bargaining Power of Suppliers

High competition among suppliers (ITEP) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (ITEP) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (ITEP) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (ITEP) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute has lower performance (ITEP) A lower performance product means a customer is less likely to switch from ITEP to another product...
Substitute is lower quality (ITEP) A lower quality product means a customer is less likely to switch from ITEP to another product or...
Substitute product is inferior (ITEP) An inferior product means a customer is less likely to switch from ITEP to another product or...

Bargaining Power of Customers

Buyers require special customization (ITEP) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (ITEP) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer information availability (ITEP) When buyers have limited information, they are at a disadvantage in negotiations with sellers....

Threat of New Competitors

Strong distribution network required (ITEP) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (ITEP) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (ITEP) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (ITEP) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (ITEP) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (ITEP) If existing competitors have the best geographical locations, new competitors will have a...
Entry barriers are high (ITEP) 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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