BACKYARD SODA CO. - Five Forces Analysis

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Intensity of Existing Rivalry Low storage costs (BACKYARD SODA CO.) When storage costs are low, competitors have a lower risk of having to unload their inventory all at... Large industry size (BACKYARD SODA CO.) Large industries allow multiple firms and produces to prosper without having to steal market share... Fast industry growth rate (BACKYARD SODA CO.) When industries are growing revenue quickly, they are less likely to compete, because the total... Relatively few competitors (BACKYARD SODA CO.) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Exit barriers are low (BACKYARD SODA CO.) When exit barriers are low, weak firms are more likely to leave the market, which will increase the... Bargaining Power of Suppliers Diverse distribution channel (BACKYARD SODA CO.) The more diverse distribution channels become the less bargaining power a single distributor will... Large number of substitute inputs (BACKYARD SODA CO.) When there are a large number of substitute inputs, suppliers have less bargaining leverage over... High competition among suppliers (BACKYARD SODA CO.) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Volume is critical to suppliers (BACKYARD SODA CO.) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Critical production inputs are similar (BACKYARD SODA CO.) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Threat of Substitutes Substitute is lower quality (BACKYARD SODA CO.) A lower quality product means a customer is less likely to switch from BACKYARD SODA CO. to another... Substantial product differentiation (BACKYARD SODA CO.) When products and services are very different, customers are less likely to find comparable product... Substitute product is inferior (BACKYARD SODA CO.) An inferior product means a customer is less likely to switch from BACKYARD SODA CO. to another... High cost of switching to substitutes (BACKYARD SODA CO.) Limited number of substitutes means that customers cannot easily switch to other products or... Bargaining Power of Customers Low buyer price sensitivity (BACKYARD SODA CO.) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Product is important to customer (BACKYARD SODA CO.) When customers cherish particular products they end up paying more for that one product. This... Low dependency on distributors (BACKYARD SODA CO.) When produces have low dependence, distributors have less bargaining power. Low dependency... Large number of customers (BACKYARD SODA CO.) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Limited buyer choice (BACKYARD SODA CO.) When customers have limited choices they end up paying more for the choices that are available.... Threat of New Competitors Strong distribution network required (BACKYARD SODA CO.) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... Strong brand names are important (BACKYARD SODA CO.) If strong brands are critical to compete, then new competitors will have to improve their brand... Geographic factors limit competition (BACKYARD SODA CO.) If existing competitors have the best geographical locations, new competitors will have a... Customers are loyal to existing brands (BACKYARD SODA CO.) It takes time and money to build a brand. When companies need to spend resources building a brand,... Entry barriers are high (BACKYARD SODA CO.) 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 backyard-soda-co'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 backyard-soda-co's most important five forces statements.