Lego / Lego - Five Forces Analysis

Lego / Lego - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Lego / Lego) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Critical production inputs are similar (Lego / Lego) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
High competition among suppliers (Lego / Lego) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...

Threat of Substitutes

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

Bargaining Power of Customers

Limited buyer choice (Lego / Lego) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Lego / Lego) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Lego / Lego) If strong brands are critical to compete, then new competitors will have to improve their brand...
Patents limit new competition (Lego / Lego) Patents that cover vital technologies make it difficult for new competitors, because the best...
Advanced technologies are required (Lego / Lego) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands (Lego / Lego) 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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