Sterling - Five Forces Analysis

Sterling - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Sterling) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Sterling) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Low storage costs (Sterling) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...

Bargaining Power of Suppliers

Volume is critical to suppliers (Sterling) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Diverse distribution channel (Sterling) The more diverse distribution channels become the less bargaining power a single distributor will...
Low concentration of suppliers (Sterling) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...

Threat of Substitutes

Substantial product differentiation (Sterling) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (Sterling) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Product is important to customer (Sterling) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (Sterling) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

Strong distribution network required (Sterling) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High sunk costs limit competition (Sterling) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Sterling) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Sterling) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (Sterling) Patents that cover vital technologies make it difficult for new competitors, because the best...
Geographic factors limit competition (Sterling) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Sterling) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Sterling) High switching costs make it difficult for customers to change which products they normally...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to sterling's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up sterling's most important five forces statements.