New Product - Five Forces Analysis

New Product - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

High competition among suppliers (New Product) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (New Product) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Critical production inputs are similar (New Product) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

Substitute is lower quality (New Product) A lower quality product means a customer is less likely to switch from New Product to another...
Substitute has lower performance (New Product) A lower performance product means a customer is less likely to switch from New Product to another...
Substitute product is inferior (New Product) An inferior product means a customer is less likely to switch from New Product to another product or...
Substantial product differentiation (New Product) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (New Product) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (New Product) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

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

Threat of New Competitors

Strong brand names are important (New Product) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (New Product) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands (New Product) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (New Product) High switching costs make it difficult for customers to change which products they normally...
High learning curve (New Product) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (New Product) 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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