Porter's Five Forces-CCS - Five Forces Analysis

Porter's Five Forces-CCS - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (Porter's Five Forces-CCS) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Government limits competition (Porter's Five Forces-CCS) Government policies and regulations can dictate the level of competition within the industry. When...
Fast industry growth rate (Porter's Five Forces-CCS) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Low concentration of suppliers (Porter's Five Forces-CCS) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
High competition among suppliers (Porter's Five Forces-CCS) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Porter's Five Forces-CCS) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (Porter's Five Forces-CCS) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Porter's Five Forces-CCS) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute is lower quality (Porter's Five Forces-CCS) A lower quality product means a customer is less likely to switch from Porter's Five Forces-CCS to...
Substantial product differentiation (Porter's Five Forces-CCS) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

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

Threat of New Competitors

Strong distribution network required (Porter's Five Forces-CCS) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Porter's Five Forces-CCS) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Porter's Five Forces-CCS) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Porter's Five Forces-CCS) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Porter's Five Forces-CCS) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Porter's Five Forces-CCS) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High learning curve (Porter's Five Forces-CCS) When the learning curve is high, new competitors must spend time and money studying the market...
Geographic factors limit competition (Porter's Five Forces-CCS) If existing competitors have the best geographical locations, new competitors will have a...
Entry barriers are high (Porter's Five Forces-CCS) 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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