Bla bla - Five Forces Analysis

Bla bla - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Bla bla) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Bla bla) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Low cost of switching suppliers (Bla bla) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Volume is critical to suppliers (Bla bla) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute is lower quality (Bla bla) A lower quality product means a customer is less likely to switch from Bla bla to another product or...
Substitute has lower performance (Bla bla) A lower performance product means a customer is less likely to switch from Bla bla to another...
Substitute product is inferior (Bla bla) An inferior product means a customer is less likely to switch from Bla bla to another product or...
High cost of switching to substitutes (Bla bla) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Buyers require special customization (Bla bla) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Bla bla) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Bla bla) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Bla bla) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

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

What is Porter's Five Forces Analysis?

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