BIG - Five Forces Analysis

BIG - Five Forces Analysis

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Intensity of Existing Rivalry

Bargaining Power of Suppliers

Low concentration of suppliers (BIG) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (BIG) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (BIG) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (BIG) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (BIG) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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

Bargaining Power of Customers

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

Threat of New Competitors

Strong distribution network required (BIG) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (BIG) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (BIG) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (BIG) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (BIG) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Entry barriers are high (BIG) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

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