Lochem Industries - Five Forces Analysis

Lochem Industries - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (Lochem Industries) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Large industry size (Lochem Industries) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers (Lochem Industries) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (Lochem Industries) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low concentration of suppliers (Lochem Industries) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...

Threat of Substitutes

Substitute is lower quality (Lochem Industries) A lower quality product means a customer is less likely to switch from Lochem Industries to another...
Substitute has lower performance (Lochem Industries) A lower performance product means a customer is less likely to switch from Lochem Industries to...
Substitute product is inferior (Lochem Industries) An inferior product means a customer is less likely to switch from Lochem Industries to another...
High cost of switching to substitutes (Lochem Industries) Limited number of substitutes means that customers cannot easily switch to other products or...
Substantial product differentiation (Lochem Industries) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (Lochem Industries) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (Lochem Industries) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (Lochem Industries) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

Strong distribution network required (Lochem Industries) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Lochem Industries) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Lochem Industries) Advanced technologies make it difficult for new competitors to enter the market because they have to...
High switching costs for customers (Lochem Industries) High switching costs make it difficult for customers to change which products they normally...
Patents limit new competition (Lochem Industries) Patents that cover vital technologies make it difficult for new competitors, because the best...
High learning curve (Lochem Industries) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Lochem Industries) 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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