B2basics - Five Forces Analysis

B2basics - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (B2basics) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (B2basics) 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 (B2basics) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Low concentration of suppliers (B2basics) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
High competition among suppliers (B2basics) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...

Threat of Substitutes

Substitute is lower quality (B2basics) A lower quality product means a customer is less likely to switch from B2basics to another product...
Substitute product is inferior (B2basics) An inferior product means a customer is less likely to switch from B2basics to another product or...
Substantial product differentiation (B2basics) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (B2basics) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (B2basics) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Product is important to customer (B2basics) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (B2basics) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (B2basics) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (B2basics) If strong brands are critical to compete, then new competitors will have to improve their brand...
Customers are loyal to existing brands (B2basics) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (B2basics) High switching costs make it difficult for customers to change which products they normally...
High learning curve (B2basics) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to b2basics'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 b2basics's most important five forces statements.