Adidas-Sportwear - Five Forces Analysis

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Short description of Porter's Five Forces analysis for… Intensity of Existing Rivalry Large industry size (Adidas-Sportwear) Large industries allow multiple firms and produces to prosper without having to steal market share... Bargaining Power of Suppliers 5 adidas High competition among suppliers (Adidas-Sportwear) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Diverse distribution channel (Adidas-Sportwear) The more diverse distribution channels become the less bargaining power a single distributor will... Critical production inputs are similar (Adidas-Sportwear) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Volume is critical to suppliers (Adidas-Sportwear) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Threat of Substitutes Substitute has lower performance (Adidas-Sportwear) A lower performance product means a customer is less likely to switch from Adidas-Sportwear to... Substitute is lower quality (Adidas-Sportwear) A lower quality product means a customer is less likely to switch from Adidas-Sportwear to another... Substitute product is inferior (Adidas-Sportwear) An inferior product means a customer is less likely to switch from Adidas-Sportwear to another... Bargaining Power of Customers 1 a Large name adidas Low buyer price sensitivity (Adidas-Sportwear) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Product is important to customer (Adidas-Sportwear) When customers cherish particular products they end up paying more for that one product. This... Large number of customers (Adidas-Sportwear) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Threat of New Competitors Strong distribution network required (Adidas-Sportwear) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... Strong brand names are important (Adidas-Sportwear) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (Adidas-Sportwear) Advanced technologies make it difficult for new competitors to enter the market because they have to... Patents limit new competition (Adidas-Sportwear) Patents that cover vital technologies make it difficult for new competitors, because the best... Industry requires economies of scale (Adidas-Sportwear) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Geographic factors limit competition (Adidas-Sportwear) If existing competitors have the best geographical locations, new competitors will have a... Customers are loyal to existing brands (Adidas-Sportwear) It takes time and money to build a brand. When companies need to spend resources building a brand,... High learning curve (Adidas-Sportwear) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (Adidas-Sportwear) 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 adidas-sportwear'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 adidas-sportwear's most important five forces statements.