Automobile Manufacturing - Five Forces Analysis

Automobile Manufacturing - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

High competition among suppliers (Automobile Manufacturing) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Critical production inputs are similar (Automobile Manufacturing) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Automobile Manufacturing) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute product is inferior (Automobile Manufacturing) An inferior product means a customer is less likely to switch from Automobile Manufacturing to...
High cost of switching to substitutes (Automobile Manufacturing) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Limited buyer choice (Automobile Manufacturing) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

Strong distribution network required (Automobile Manufacturing) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Automobile Manufacturing) If strong brands are critical to compete, then new competitors will have to improve their brand...
Geographic factors limit competition (Automobile Manufacturing) If existing competitors have the best geographical locations, new competitors will have a...

What is Porter's Five Forces Analysis?

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