AN Sourcing - Five Forces Analysis

AN Sourcing - Five Forces Analysis

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Intensity of Existing Rivalry

Government limits competition (AN Sourcing ) Government policies and regulations can dictate the level of competition within the industry. When...
Competition from international organizations (AN Sourcing ) Please edit this page to add a description…
Low storage costs (AN Sourcing ) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Large industry size (AN Sourcing ) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

High competition among suppliers (AN Sourcing ) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (AN Sourcing ) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute is lower quality (AN Sourcing ) A lower quality product means a customer is less likely to switch from **AN Sourcing ** to another...
Substitute product is inferior (AN Sourcing ) An inferior product means a customer is less likely to switch from **AN Sourcing ** to another...
Substantial product differentiation (AN Sourcing ) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Niche customers (AN Sourcing ) Please edit this page to add a description…

Threat of New Competitors

Strong distribution network required (AN Sourcing ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (AN Sourcing ) If strong brands are critical to compete, then new competitors will have to improve their brand...
High capital requirements (AN Sourcing ) High capital requirements mean a company must spend a lot of money in order to compete in the...
Customers are loyal to existing brands (AN Sourcing ) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Advanced technologies are required (AN Sourcing ) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (AN Sourcing ) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (AN Sourcing ) If existing competitors have the best geographical locations, new competitors will have a...

What is Porter's Five Forces Analysis?

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