Musical Instrument Store - Five Forces Analysis

Musical Instrument Store - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

High competition among suppliers (Musical Instrument Store) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Musical Instrument Store) The more diverse distribution channels become the less bargaining power a single distributor will...
Large number of substitute inputs (Musical Instrument Store) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...

Threat of Substitutes

Substitute is lower quality (Musical Instrument Store) A lower quality product means a customer is less likely to switch from Musical Instrument Store to...
Substitute has lower performance (Musical Instrument Store) A lower performance product means a customer is less likely to switch from Musical Instrument Store...
Substitute product is inferior (Musical Instrument Store) An inferior product means a customer is less likely to switch from Musical Instrument Store to...
Substantial product differentiation (Musical Instrument Store) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Product is important to customer (Musical Instrument Store) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (Musical Instrument Store) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Musical Instrument Store) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Musical Instrument Store) If strong brands are critical to compete, then new competitors will have to improve their brand...
Entry barriers are high (Musical Instrument Store) When barriers are high, it is more difficult for new competitors to enter the market. High entry...
Advanced technologies are required (Musical Instrument Store) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Musical Instrument Store) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Musical Instrument Store) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Musical Instrument Store) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to musical-instrument-store'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 musical-instrument-store's most important five forces statements.