Southern - Five Forces Analysis

Southern - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Southern) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (Southern) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers (Southern) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (Southern) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute product is inferior (Southern) An inferior product means a customer is less likely to switch from Southern to another product or...
Substitute is lower quality (Southern) A lower quality product means a customer is less likely to switch from Southern to another product...
Limited number of substitutes (Southern) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Product is important to customer (Southern) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Southern) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Low buyer price sensitivity (Southern) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....

Threat of New Competitors

Strong distribution network required (Southern) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Advanced technologies are required (Southern) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Southern) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (Southern) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Southern) 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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