Northrop Grumman2 - Five Forces Analysis

Northrop Grumman2 - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (Northrop Grumman2) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Large industry size (Northrop Grumman2) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Low concentration of suppliers (Northrop Grumman2) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...

Threat of Substitutes

Substantial product differentiation (Northrop Grumman2) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (Northrop Grumman2) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (Northrop Grumman2) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (Northrop Grumman2) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Northrop Grumman2) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Northrop Grumman2) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (Northrop Grumman2) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Northrop Grumman2) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Northrop Grumman2) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Advanced technologies are required (Northrop Grumman2) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Patents limit new competition (Northrop Grumman2) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Northrop Grumman2) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Northrop Grumman2) High switching costs make it difficult for customers to change which products they normally...
High learning curve (Northrop Grumman2) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Northrop Grumman2) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

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