Afaefae - Five Forces Analysis

Afaefae - Five Forces Analysis

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Intensity of Existing Rivalry

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Government limits competition (Afaefae) Government policies and regulations can dictate the level of competition within the industry. When...

Bargaining Power of Suppliers

Critical production inputs are similar (Afaefae) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
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Low cost of switching suppliers (Afaefae) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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

Bargaining Power of Customers

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Low buyer price sensitivity (Afaefae) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Limited buyer information availability (Afaefae) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Large number of customers (Afaefae) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

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High capital requirements (Afaefae) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Afaefae) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Afaefae) If strong brands are critical to compete, then new competitors will have to improve their brand...

What is Porter's Five Forces Analysis?

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