SummaBook - Five Forces Analysis

SummaBook - Five Forces Analysis

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Intensity of Existing Rivalry

Exit barriers are low (SummaBook) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Fast industry growth rate (SummaBook) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (SummaBook) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Low storage costs (SummaBook) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...

Bargaining Power of Suppliers

High competition among suppliers (SummaBook) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (SummaBook) The more diverse distribution channels become the less bargaining power a single distributor will...
Low cost of switching suppliers (SummaBook) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute product is inferior (SummaBook) An inferior product means a customer is less likely to switch from SummaBook to another product or...
Substitute has lower performance (SummaBook) A lower performance product means a customer is less likely to switch from SummaBook to another...
High cost of switching to substitutes (SummaBook) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Product is important to customer (SummaBook) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (SummaBook) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (SummaBook) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

Strong brand names are important (SummaBook) If strong brands are critical to compete, then new competitors will have to improve their brand...
Patents limit new competition (SummaBook) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (SummaBook) 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?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to summabook'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 summabook's most important five forces statements.