Kelley's Salon - Five Forces Analysis

Kelley's Salon - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Large industry size (Kelley's Salon) Large industries allow multiple firms and produces to prosper without having to steal market share...
Exit barriers are low (Kelley's Salon) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
while unlikely (Kelley's Salon) Please edit this page to add a description…
Fast industry growth rate (Kelley's Salon) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Large number of substitute inputs (Kelley's Salon) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Kelley's Salon) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Kelley's Salon) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (Kelley's Salon) A lower performance product means a customer is less likely to switch from Kelley's Salon to another...
Limited number of substitutes (Kelley's Salon) A limited number of substitutes mean that customers cannot easily find other products or services...
High cost of switching to substitutes (Kelley's Salon) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Buyers require special customization (Kelley's Salon) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Kelley's Salon) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Kelley's Salon) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Kelley's Salon) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Geographic factors limit competition (Kelley's Salon) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Kelley's Salon) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Kelley's Salon) High switching costs make it difficult for customers to change which products they normally...
High learning curve (Kelley's Salon) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

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