Andrew Rockliff - Five Forces Analysis

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Intensity of Existing Rivalry Government limits competition (Andrew Rockliff) Government policies and regulations can dictate the level of competition within the industry. When... Large industry size (Andrew Rockliff) Large industries allow multiple firms and produces to prosper without having to steal market share... Bargaining Power of Suppliers High competition among suppliers (Andrew Rockliff) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Critical production inputs are similar (Andrew Rockliff) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Diverse distribution channel (Andrew Rockliff) The more diverse distribution channels become the less bargaining power a single distributor will... Volume is critical to suppliers (Andrew Rockliff) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Threat of Substitutes Substitute is lower quality (Andrew Rockliff) A lower quality product means a customer is less likely to switch from Andrew Rockliff to another... Substitute product is inferior (Andrew Rockliff) An inferior product means a customer is less likely to switch from Andrew Rockliff to another... High cost of switching to substitutes (Andrew Rockliff) Limited number of substitutes means that customers cannot easily switch to other products or... Limited number of substitutes (Andrew Rockliff) A limited number of substitutes mean that customers cannot easily find other products or services... Bargaining Power of Customers Product is important to customer (Andrew Rockliff) When customers cherish particular products they end up paying more for that one product. This... Large number of customers (Andrew Rockliff) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Threat of New Competitors Strong distribution network required (Andrew Rockliff) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (Andrew Rockliff) High capital requirements mean a company must spend a lot of money in order to compete in the... High sunk costs limit competition (Andrew Rockliff) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Strong brand names are important (Andrew Rockliff) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (Andrew Rockliff) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (Andrew Rockliff) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Geographic factors limit competition (Andrew Rockliff) If existing competitors have the best geographical locations, new competitors will have a... Customers are loyal to existing brands (Andrew Rockliff) It takes time and money to build a brand. When companies need to spend resources building a brand,... High switching costs for customers (Andrew Rockliff) High switching costs make it difficult for customers to change which products they normally... High learning curve (Andrew Rockliff) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (Andrew Rockliff) When barriers are high, it is more difficult for new competitors to enter the market. High entry... What is Porter's Five Forces Analysis? WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to andrew-rockliff'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 andrew-rockliff's most important five forces statements.