LOreal - Five Forces Analysis

LOreal - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (LOreal) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (LOreal) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

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Large number of substitute inputs (LOreal) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Low cost of switching suppliers (LOreal) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
High competition among suppliers (LOreal) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (LOreal) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

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

Bargaining Power of Customers

Product is important to customer (LOreal) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (LOreal) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (LOreal) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (LOreal) High capital requirements mean a company must spend a lot of money in order to compete in the...
Advanced technologies are required (LOreal) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Geographic factors limit competition (LOreal) If existing competitors have the best geographical locations, new competitors will have a...
Patents limit new competition (LOreal) Patents that cover vital technologies make it difficult for new competitors, because the best...
Entry barriers are high (LOreal) 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 loreal'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 loreal's most important five forces statements.