Rocky mountain chocolate factory inc. - Five Forces Analysis

Rocky mountain chocolate factory inc. - Five Forces Analysis

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Intensity of Existing Rivalry

Low storage costs (Rocky mountain chocolate factory inc.) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Government limits competition (Rocky mountain chocolate factory inc.) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Rocky mountain chocolate factory inc.) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Rocky mountain chocolate factory inc.) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (Rocky mountain chocolate factory inc.) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (Rocky mountain chocolate factory inc.) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Large number of substitute inputs (Rocky mountain chocolate factory inc.) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Rocky mountain chocolate factory inc.) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Critical production inputs are similar (Rocky mountain chocolate factory inc.) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Inputs have little impact on costs (Rocky mountain chocolate factory inc.) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Diverse distribution channel (Rocky mountain chocolate factory inc.) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (Rocky mountain chocolate factory inc.) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low concentration of suppliers (Rocky mountain chocolate factory inc.) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...

Threat of Substitutes

Substitute is lower quality (Rocky mountain chocolate factory inc.) A lower quality product means a customer is less likely to switch from Rocky mountain chocolate...

Bargaining Power of Customers

Buyers require special customization (Rocky mountain chocolate factory inc.) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Rocky mountain chocolate factory inc.) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Rocky mountain chocolate factory inc.) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Rocky mountain chocolate factory inc.) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer information availability (Rocky mountain chocolate factory inc.) When buyers have limited information, they are at a disadvantage in negotiations with sellers....

Threat of New Competitors

Strong distribution network required (Rocky mountain chocolate factory inc.) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...

What is Porter's Five Forces Analysis?

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