Amazon.com Inc - Five Forces Analysis

Amazon.com Inc - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Amazon.com Inc) Large industries allow multiple firms and produces to prosper without having to steal market share...
Government limits competition (Amazon.com Inc) Government policies and regulations can dictate the level of competition within the industry. When...
Fast industry growth rate (Amazon.com Inc) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

High competition among suppliers (Amazon.com Inc) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Amazon.com Inc) The more diverse distribution channels become the less bargaining power a single distributor will...
Large number of substitute inputs (Amazon.com Inc) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Volume is critical to suppliers (Amazon.com Inc) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Amazon.com Inc) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Bargaining Power of Customers

Large number of customers (Amazon.com Inc) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (Amazon.com Inc) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong distribution network required (Amazon.com Inc) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Amazon.com Inc) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Amazon.com Inc) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Entry barriers are high (Amazon.com Inc) 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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