Motorcycle Industry in 2002 - Five Forces Analysis

Motorcycle Industry in 2002 - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Motorcycle Industry in 2002) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Motorcycle Industry in 2002) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Large number of substitute inputs (Motorcycle Industry in 2002) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Motorcycle Industry in 2002) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Motorcycle Industry in 2002) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

brand loyalty and lifestyle (Motorcycle Industry in 2002) Please edit this page to add a description…
Strong branding (Motorcycle Industry in 2002) Please edit this page to add a description…
Substantial product differentiation (Motorcycle Industry in 2002) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (Motorcycle Industry in 2002) A limited number of substitutes mean that customers cannot easily find other products or services...
High cost of switching to substitutes (Motorcycle Industry in 2002) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Customers loyal to strong brands (Motorcycle Industry in 2002) Please edit this page to add a description…
Buyers require special customization (Motorcycle Industry in 2002) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (Motorcycle Industry in 2002) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Motorcycle Industry in 2002) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Motorcycle Industry in 2002) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Motorcycle Industry in 2002) If strong brands are critical to compete, then new competitors will have to improve their brand...
High capital requirements (Motorcycle Industry in 2002) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (Motorcycle Industry in 2002) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (Motorcycle Industry in 2002) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Motorcycle Industry in 2002) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

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