B - Five Forces Analysis

B - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (B) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (B) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (B) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Large number of substitute inputs (B) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Diverse distribution channel (B) The more diverse distribution channels become the less bargaining power a single distributor will...
High competition among suppliers (B) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...

Threat of Substitutes

Substantial product differentiation (B) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Low dependency on distributors (B) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (B) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (B) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (B) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Industry requires economies of scale (B) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Strong brand names are important (B) If strong brands are critical to compete, then new competitors will have to improve their brand...

What is Porter's Five Forces Analysis?

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