American Apparel - Five Forces Analysis

American Apparel - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (American Apparel ) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (American Apparel ) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Large number of substitute inputs (American Apparel ) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Low concentration of suppliers (American Apparel ) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Low cost of switching suppliers (American Apparel ) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute is lower quality (American Apparel ) A lower quality product means a customer is less likely to switch from **American Apparel ** to...
Substitute has lower performance (American Apparel ) A lower performance product means a customer is less likely to switch from **American Apparel ** to...
Substantial product differentiation (American Apparel ) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (American Apparel ) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Product is important to customer (American Apparel ) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (American Apparel ) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong brand names are important (American Apparel ) If strong brands are critical to compete, then new competitors will have to improve their brand...
Strong distribution network required (American Apparel ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Industry requires economies of scale (American Apparel ) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (American Apparel ) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to american-apparel'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 american-apparel's most important five forces statements.