Amazon.com, Incorporated - Five Forces Analysis

Amazon.com, Incorporated - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Amazon.com, Incorporated) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Volume is critical to suppliers (Amazon.com, Incorporated) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
High competition among suppliers (Amazon.com, Incorporated) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Amazon.com, Incorporated) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (Amazon.com, Incorporated) A lower performance product means a customer is less likely to switch from Amazon.com, Incorporated...
Substitute is lower quality (Amazon.com, Incorporated) A lower quality product means a customer is less likely to switch from Amazon.com, Incorporated to...

Bargaining Power of Customers

Threat of New Competitors

Strong distribution network required (Amazon.com, Incorporated) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Industry requires economies of scale (Amazon.com, Incorporated) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High capital requirements (Amazon.com, Incorporated) High capital requirements mean a company must spend a lot of money in order to compete in the...
Geographic factors limit competition (Amazon.com, Incorporated) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Amazon.com, Incorporated) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Amazon.com, Incorporated) 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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