Abcd1234 - Five Forces Analysis

Abcd1234 - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Abcd1234) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Abcd1234) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (Abcd1234) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

High competition among suppliers (Abcd1234) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Abcd1234) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (Abcd1234) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Abcd1234) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Abcd1234) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (Abcd1234) A lower performance product means a customer is less likely to switch from Abcd1234 to another...
Substitute is lower quality (Abcd1234) A lower quality product means a customer is less likely to switch from Abcd1234 to another product...
Substantial product differentiation (Abcd1234) When products and services are very different, customers are less likely to find comparable product...
Substitute product is inferior (Abcd1234) An inferior product means a customer is less likely to switch from Abcd1234 to another product or...
Limited number of substitutes (Abcd1234) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Large number of customers (Abcd1234) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Product is important to customer (Abcd1234) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (Abcd1234) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Abcd1234) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Abcd1234) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Advanced technologies are required (Abcd1234) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Entry barriers are high (Abcd1234) When barriers are high, it is more difficult for new competitors to enter the market. High entry...
High learning curve (Abcd1234) When the learning curve is high, new competitors must spend time and money studying the market...
Industry requires economies of scale (Abcd1234) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (Abcd1234) Patents that cover vital technologies make it difficult for new competitors, because the best...

What is Porter's Five Forces Analysis?

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