Pizza - Five Forces Analysis

Pizza - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

Diverse distribution channel (Pizza) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Pizza) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (Pizza) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Pizza) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Pizza) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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

Bargaining Power of Customers

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

Threat of New Competitors

Strong distribution network required (Pizza) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Pizza) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (Pizza) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Pizza) If existing competitors have the best geographical locations, new competitors will have a...
High switching costs for customers (Pizza) High switching costs make it difficult for customers to change which products they normally...
Customers are loyal to existing brands (Pizza) 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 pizza'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 pizza's most important five forces statements.