Lzon - Five Forces Analysis

Lzon - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

High competition among suppliers (Lzon) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Lzon) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (Lzon) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Lzon) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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

Bargaining Power of Customers

Low buyer price sensitivity (Lzon) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Lzon) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Lzon) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

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