Woodend Manufacturing - Five Forces Analysis

Woodend Manufacturing - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Woodend Manufacturing) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (Woodend Manufacturing) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (Woodend Manufacturing) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Critical production inputs are similar (Woodend Manufacturing) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (Woodend Manufacturing) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute is lower quality (Woodend Manufacturing) A lower quality product means a customer is less likely to switch from Woodend Manufacturing to...
Substitute product is inferior (Woodend Manufacturing) An inferior product means a customer is less likely to switch from Woodend Manufacturing to another...
Substantial product differentiation (Woodend Manufacturing) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (Woodend Manufacturing) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (Woodend Manufacturing) When customers require special customizations, they are less likely to switch to producers who have...
Low dependency on distributors (Woodend Manufacturing) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Woodend Manufacturing) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

High capital requirements (Woodend Manufacturing) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Woodend Manufacturing) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Woodend Manufacturing) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Woodend Manufacturing) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Patents limit new competition (Woodend Manufacturing) Patents that cover vital technologies make it difficult for new competitors, because the best...
Geographic factors limit competition (Woodend Manufacturing) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Woodend Manufacturing) 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?

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