Abcds - Five Forces Analysis

Abcds - Five Forces Analysis

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Intensity of Existing Rivalry

Bargaining Power of Suppliers

Low concentration of suppliers (Abcds) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (Abcds) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (Abcds) 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 (Abcds) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (Abcds) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Low dependency on distributors (Abcds) When produces have low dependence, distributors have less bargaining power. Low dependency...
Large number of customers (Abcds) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Abcds) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

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

What is Porter's Five Forces Analysis?

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