Vapiano - Five Forces Analysis

Vapiano - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Large industry size (Vapiano) Large industries allow multiple firms and produces to prosper without having to steal market share...
Low storage costs (Vapiano) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Fast industry growth rate (Vapiano) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

High competition among suppliers (Vapiano) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Inputs have little impact on costs (Vapiano) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Low cost of switching suppliers (Vapiano) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute is lower quality (Vapiano) A lower quality product means a customer is less likely to switch from Vapiano to another product or...
Substitute product is inferior (Vapiano) An inferior product means a customer is less likely to switch from Vapiano to another product or...

Bargaining Power of Customers

Buyers require special customization (Vapiano) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Vapiano) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (Vapiano) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (Vapiano) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Vapiano) If strong brands are critical to compete, then new competitors will have to improve their brand...
Patents limit new competition (Vapiano) Patents that cover vital technologies make it difficult for new competitors, because the best...
Geographic factors limit competition (Vapiano) If existing competitors have the best geographical locations, new competitors will have a...

What is Porter's Five Forces Analysis?

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