SGMT 6000 Assignment 1 - Five Forces Analysis

SGMT 6000 Assignment 1 - Five Forces Analysis

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Intensity of Existing Rivalry

high number of competitors (SGMT 6000 Assignment 1 ) Please edit this page to add a description…
steady industry growth (SGMT 6000 Assignment 1 ) Please edit this page to add a description…

Bargaining Power of Suppliers

Critical production inputs are similar (SGMT 6000 Assignment 1 ) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Diverse distribution channel (SGMT 6000 Assignment 1 ) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (SGMT 6000 Assignment 1 ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
good relationships with suppliers (SGMT 6000 Assignment 1 ) Please edit this page to add a description…

Threat of Substitutes

Substitute product is inferior (SGMT 6000 Assignment 1 ) An inferior product means a customer is less likely to switch from **SGMT 6000 Assignment 1 ** to...
Substitute is lower quality (SGMT 6000 Assignment 1 ) A lower quality product means a customer is less likely to switch from **SGMT 6000 Assignment 1 **...
higher number of substitutes (SGMT 6000 Assignment 1 ) Please edit this page to add a description…
Substantial product differentiation (SGMT 6000 Assignment 1 ) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

low switching costs (SGMT 6000 Assignment 1 ) Please edit this page to add a description…
Large number of customers (SGMT 6000 Assignment 1 ) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Buyers require special customization (SGMT 6000 Assignment 1 ) When customers require special customizations, they are less likely to switch to producers who have...

Threat of New Competitors

Strong distribution network required (SGMT 6000 Assignment 1 ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (SGMT 6000 Assignment 1 ) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (SGMT 6000 Assignment 1 ) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (SGMT 6000 Assignment 1 ) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (SGMT 6000 Assignment 1 ) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (SGMT 6000 Assignment 1 ) 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?

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