Honda - Five Forces Analysis

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Short description of Porter's Five Forces analysis for… Intensity of Existing Rivalry Toyota rivalry amounng competing sellers Government limits competition (Honda) Government policies and regulations can dictate the level of competition within the industry. When... Large industry size (Honda) Large industries allow multiple firms and produces to prosper without having to steal market share... Bargaining Power of Suppliers honda Volume is critical to suppliers (Honda) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Threat of Substitutes Bargaining Power of Customers Large number of customers (Honda) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Threat of New Competitors Strong distribution network required (Honda) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (Honda) High capital requirements mean a company must spend a lot of money in order to compete in the... High sunk costs limit competition (Honda) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Strong brand names are important (Honda) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (Honda) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (Honda) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Patents limit new competition (Honda) Patents that cover vital technologies make it difficult for new competitors, because the best... Customers are loyal to existing brands (Honda) It takes time and money to build a brand. When companies need to spend resources building a brand,... High learning curve (Honda) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (Honda) 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 honda'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 honda's most important five forces statements.