Spangsberg Chokolade A/S - Five Forces Analysis

Spangsberg Chokolade A/S - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

High competition among suppliers (Spangsberg Chokolade A/S) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Spangsberg Chokolade A/S) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (Spangsberg Chokolade A/S) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Spangsberg Chokolade A/S) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Spangsberg Chokolade A/S) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute product is inferior (Spangsberg Chokolade A/S) An inferior product means a customer is less likely to switch from Spangsberg Chokolade A/S to...

Bargaining Power of Customers

Low buyer price sensitivity (Spangsberg Chokolade A/S) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (Spangsberg Chokolade A/S) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Product is important to customer (Spangsberg Chokolade A/S) When customers cherish particular products they end up paying more for that one product. This...
Low dependency on distributors (Spangsberg Chokolade A/S) When produces have low dependence, distributors have less bargaining power. Low dependency...

Threat of New Competitors

High capital requirements (Spangsberg Chokolade A/S) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (Spangsberg Chokolade A/S) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Spangsberg Chokolade A/S) If existing competitors have the best geographical locations, new competitors will have a...
Strong brand names are important (Spangsberg Chokolade A/S) If strong brands are critical to compete, then new competitors will have to improve their brand...
Entry barriers are high (Spangsberg Chokolade A/S) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

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