Infrastructure industry - Five Forces Analysis

Home Five Forces Index Infrastructure industry - Five Forces Analysis

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Intensity of Existing Rivalry Low storage costs (Infrastructure industry) When storage costs are low, competitors have a lower risk of having to unload their inventory all at... 1 Large industry size (Infrastructure industry) Large industries allow multiple firms and produces to prosper without having to steal market share... Exit barriers are low (Infrastructure industry) When exit barriers are low, weak firms are more likely to leave the market, which will increase the... Relatively few competitors (Infrastructure industry) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Government limits competition (Infrastructure industry) Government policies and regulations can dictate the level of competition within the industry. When... Fast industry growth rate (Infrastructure industry) When industries are growing revenue quickly, they are less likely to compete, because the total... Bargaining Power of Suppliers Low concentration of suppliers (Infrastructure industry) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low... Large number of substitute inputs (Infrastructure industry) When there are a large number of substitute inputs, suppliers have less bargaining leverage over... High competition among suppliers (Infrastructure industry) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Critical production inputs are similar (Infrastructure industry) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Diverse distribution channel (Infrastructure industry) The more diverse distribution channels become the less bargaining power a single distributor will... Inputs have little impact on costs (Infrastructure industry) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power.... Volume is critical to suppliers (Infrastructure industry) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Low cost of switching suppliers (Infrastructure industry) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching... Threat of Substitutes Substitute has lower performance (Infrastructure industry) A lower performance product means a customer is less likely to switch from Infrastructure industry... Substitute is lower quality (Infrastructure industry) A lower quality product means a customer is less likely to switch from Infrastructure industry to... Substitute product is inferior (Infrastructure industry) An inferior product means a customer is less likely to switch from Infrastructure industry to... Limited number of substitutes (Infrastructure industry) A limited number of substitutes mean that customers cannot easily find other products or services... Substantial product differentiation (Infrastructure industry) When products and services are very different, customers are less likely to find comparable product... High cost of switching to substitutes (Infrastructure industry) Limited number of substitutes means that customers cannot easily switch to other products or... Bargaining Power of Customers Buyers require special customization (Infrastructure industry) When customers require special customizations, they are less likely to switch to producers who have... Low buyer price sensitivity (Infrastructure industry) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Low dependency on distributors (Infrastructure industry) When produces have low dependence, distributors have less bargaining power. Low dependency... Limited buyer information availability (Infrastructure industry) When buyers have limited information, they are at a disadvantage in negotiations with sellers.... Product is important to customer (Infrastructure industry) When customers cherish particular products they end up paying more for that one product. This... Large number of customers (Infrastructure industry) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Limited buyer choice (Infrastructure industry) When customers have limited choices they end up paying more for the choices that are available.... Threat of New Competitors Strong distribution network required (Infrastructure industry) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (Infrastructure industry) High capital requirements mean a company must spend a lot of money in order to compete in the... Strong brand names are important (Infrastructure industry) If strong brands are critical to compete, then new competitors will have to improve their brand... High sunk costs limit competition (Infrastructure industry) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Advanced technologies are required (Infrastructure industry) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (Infrastructure industry) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Patents limit new competition (Infrastructure industry) Patents that cover vital technologies make it difficult for new competitors, because the best... Geographic factors limit competition (Infrastructure industry) If existing competitors have the best geographical locations, new competitors will have a... Customers are loyal to existing brands (Infrastructure industry) It takes time and money to build a brand. When companies need to spend resources building a brand,... High switching costs for customers (Infrastructure industry) High switching costs make it difficult for customers to change which products they normally... High learning curve (Infrastructure industry) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (Infrastructure industry) 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 infrastructure-industry'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 infrastructure-industry's most important five forces statements.