ABB - Porter's Five Competitive Forces Analysis

ABB - Porter's Five Competitive Forces Analysis

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Supplier power high
Buyer power high
Barrier to new entrant - high for solutions, low for products
Substitute threat - low
Competition within industry - high

Intensity of Existing Rivalry

Large industry size (ABB) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (ABB) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (ABB) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

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Large number of substitute inputs (ABB) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (ABB) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (ABB) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (ABB) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (ABB) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

High cost of switching to substitutes (ABB) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (ABB) A limited number of substitutes mean that customers cannot easily find other products or services...
Substitute is lower quality (ABB) A lower quality product means a customer is less likely to switch from ABB to another product or...

Bargaining Power of Customers

Limited buyer information availability (ABB) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Product is important to customer (ABB) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (ABB) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (ABB) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (ABB) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Strong brand names are important (ABB) If strong brands are critical to compete, then new competitors will have to improve their brand...
Patents limit new competition (ABB) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (ABB) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (ABB) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (ABB) 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 abb'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 abb's most important five forces statements.