MICO - Five Forces Analysis

MICO - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (MICO) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (MICO) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

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

Threat of Substitutes

Limited number of substitutes (MICO) A limited number of substitutes mean that customers cannot easily find other products or services...
Substitutes are either inferior quality or more expensive (MICO) Please edit this page to add a description…
Substantial product differentiation (MICO) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

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

Threat of New Competitors

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

What is Porter's Five Forces Analysis?

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