Michelle - Five Forces Analysis

Michelle - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

Low concentration of suppliers (Michelle) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Critical production inputs are similar (Michelle) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (Michelle) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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

Bargaining Power of Customers

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

Threat of New Competitors

High capital requirements (Michelle) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Michelle) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Advanced technologies are required (Michelle) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Michelle) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High switching costs for customers (Michelle) High switching costs make it difficult for customers to change which products they normally...
Geographic factors limit competition (Michelle) If existing competitors have the best geographical locations, new competitors will have a...
High learning curve (Michelle) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Michelle) 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 michelle'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 michelle's most important five forces statements.