North Face - Five Forces Analysis

North Face - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Fast industry growth rate (North Face) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Large number of substitute inputs (North Face) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Critical production inputs are similar (North Face) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
High competition among suppliers (North Face) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (North Face) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute product is inferior (North Face) An inferior product means a customer is less likely to switch from North Face to another product or...
Substantial product differentiation (North Face) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (North Face) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Low buyer price sensitivity (North Face) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Low dependency on distributors (North Face) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (North Face) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (North Face) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

Strong distribution network required (North Face) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (North Face) If strong brands are critical to compete, then new competitors will have to improve their brand...
Customers are loyal to existing brands (North Face) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Geographic factors limit competition (North Face) If existing competitors have the best geographical locations, new competitors will have a...

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