Google - Five Forces Analysis

Google - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Large industry size Large industries allow multiple firms and produces to prosper without having to steal market share...
Low storage costs When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Exit barriers are low When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Fast industry growth rate - Google When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Inputs have little impact on costs - Google When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Diverse distribution channel The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (google) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Large number of substitute inputs - Google When there are a large number of substitute inputs, suppliers have less bargaining leverage over...

Threat of Substitutes

Bargaining Power of Customers

Product is important to customer When customers cherish particular products they end up paying more for that one product. This...
Large number of customers When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong brand names are important - Google If strong brands are critical to compete, then new competitors will have to improve their brand...
Patents limit new competition Patents that cover vital technologies make it difficult for new competitors, because the best...
Advanced technologies are required Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands - Google 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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