Network 1 - Five Forces Analysis

Network 1 - Five Forces Analysis

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From Center Side

Intensity of Existing Rivalry

Low storage costs (Network 1) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Large industry size (Network 1) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Network 1) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (Network 1) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Relatively few competitors (Network 1) 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 (Network 1) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Network 1) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Network 1) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (Network 1) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (Network 1) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Inputs have little impact on costs (Network 1) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Volume is critical to suppliers (Network 1) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Limited number of substitutes (Network 1) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Limited buyer information availability (Network 1) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Low dependency on distributors (Network 1) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Network 1) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Network 1) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Network 1) When customers have limited choices they end up paying more for the choices that are available....
Buyers require special customization (Network 1) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Network 1) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....

Threat of New Competitors

High capital requirements (Network 1) High capital requirements mean a company must spend a lot of money in order to compete in the...
Advanced technologies are required (Network 1) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Geographic factors limit competition (Network 1) If existing competitors have the best geographical locations, new competitors will have a...
High learning curve (Network 1) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Network 1) 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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