Blue Nile Inc. - Five Forces Analysis

Blue Nile Inc. - Five Forces Analysis

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Intensity of Existing Rivalry

Low storage costs (Blue Nile Inc.) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Exit barriers are low (Blue Nile Inc.) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

High competition among suppliers (Blue Nile Inc.) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Blue Nile Inc.) The more diverse distribution channels become the less bargaining power a single distributor will...
Low cost of switching suppliers (Blue Nile Inc.) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

High cost of switching to substitutes (Blue Nile Inc.) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

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Low buyer price sensitivity (Blue Nile Inc.) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Limited buyer information availability (Blue Nile Inc.) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Limited buyer choice (Blue Nile Inc.) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (Blue Nile Inc.) High capital requirements mean a company must spend a lot of money in order to compete in the...
Geographic factors limit competition (Blue Nile Inc.) If existing competitors have the best geographical locations, new competitors will have a...
Strong brand names are important (Blue Nile Inc.) If strong brands are critical to compete, then new competitors will have to improve their brand...
Customers are loyal to existing brands (Blue Nile Inc.) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

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