The Luxury Industry - Five Forces Analysis

The Luxury Industry - Five Forces Analysis

Last Updated by wbot | Update This Page Now

Intensity of Existing Rivalry

Relatively few competitors (The Luxury Industry) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Government limits competition (The Luxury Industry) Government policies and regulations can dictate the level of competition within the industry. When...

Bargaining Power of Suppliers

Low concentration of suppliers (The Luxury Industry) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...

Threat of Substitutes

Substitute has lower performance (The Luxury Industry) A lower performance product means a customer is less likely to switch from The Luxury Industry to...
Substitute is lower quality (The Luxury Industry) A lower quality product means a customer is less likely to switch from The Luxury Industry to...
Substantial product differentiation (The Luxury Industry) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (The Luxury Industry) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Product is important to customer (The Luxury Industry) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

High capital requirements (The Luxury Industry) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (The Luxury Industry) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (The Luxury Industry) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (The Luxury Industry) Patents that cover vital technologies make it difficult for new competitors, because the best...
Geographic factors limit competition (The Luxury Industry) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (The Luxury Industry) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (The Luxury Industry) High switching costs make it difficult for customers to change which products they normally...
Entry barriers are high (The Luxury Industry) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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