A - Five Forces Analysis

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Short description of Porter's Five Forces analysis for… Intensity of Existing Rivalry strong Exit barriers are low Relatively few competitors (A) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Government limits competition (A) Government policies and regulations can dictate the level of competition within the industry. When... Low storage costs (A) When storage costs are low, competitors have a lower risk of having to unload their inventory all at... Bargaining Power of Suppliers A:interbandas Critical production inputs are similar (A) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... High competition among suppliers (A) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Volume is critical to suppliers (A) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Low cost of switching suppliers (A) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching... Threat of Substitutes Substitute product is inferior (A) An inferior product means a customer is less likely to switch from A to another product or service. Substitute is lower quality (A) A lower quality product means a customer is less likely to switch from A to another product or... Bargaining Power of Customers Buyers require special customization (A) When customers require special customizations, they are less likely to switch to producers who have... Low buyer price sensitivity (A) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Threat of New Competitors low Advanced technologies are required (A) Advanced technologies make it difficult for new competitors to enter the market because they have to... Customers are loyal to existing brands (A) It takes time and money to build a brand. When companies need to spend resources building a brand,... Industry requires economies of scale (A) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Geographic factors limit competition (A) If existing competitors have the best geographical locations, new competitors will have a... What is Porter's Five Forces Analysis? WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to a'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 a's most important five forces statements.