LATAM - Five Forces Analysis

LATAM - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (LATAM) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

High competition among suppliers (LATAM) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (LATAM) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (LATAM) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (LATAM) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

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

Bargaining Power of Customers

Low buyer price sensitivity (LATAM) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (LATAM) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (LATAM) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (LATAM) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong distribution network required (LATAM) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High sunk costs limit competition (LATAM) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (LATAM) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (LATAM) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (LATAM) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (LATAM) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (LATAM) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (LATAM) High switching costs make it difficult for customers to change which products they normally...
High learning curve (LATAM) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (LATAM) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to latam's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up latam's most important five forces statements.