Siemens SEN - Five Forces Analysis

Siemens SEN - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Siemens SEN) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Siemens SEN) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (Siemens SEN) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (Siemens SEN) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Low storage costs (Siemens SEN) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Government limits competition (Siemens SEN) Government policies and regulations can dictate the level of competition within the industry. When...

Bargaining Power of Suppliers

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High competition among suppliers (Siemens SEN) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (Siemens SEN) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (Siemens SEN) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Siemens SEN) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (Siemens SEN) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Siemens SEN) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Siemens SEN) 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 (Siemens SEN) Limited number of substitutes means that customers cannot easily switch to other products or...
Substitute has lower performance (Siemens SEN) A lower performance product means a customer is less likely to switch from Siemens SEN to another...
Substitute is lower quality (Siemens SEN) A lower quality product means a customer is less likely to switch from Siemens SEN to another...
Substitute product is inferior (Siemens SEN) An inferior product means a customer is less likely to switch from Siemens SEN to another product or...
Substantial product differentiation (Siemens SEN) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (Siemens SEN) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (Siemens SEN) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Siemens SEN) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Limited buyer information availability (Siemens SEN) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Low dependency on distributors (Siemens SEN) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Siemens SEN) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (Siemens SEN) When customers have limited choices they end up paying more for the choices that are available....
Large number of customers (Siemens SEN) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

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Customers are loyal to existing brands (Siemens SEN) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Siemens SEN) High switching costs make it difficult for customers to change which products they normally...
High learning curve (Siemens SEN) When the learning curve is high, new competitors must spend time and money studying the market...
Strong distribution network required (Siemens SEN) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Siemens SEN) High capital requirements mean a company must spend a lot of money in order to compete in the...
Entry barriers are high (Siemens SEN) When barriers are high, it is more difficult for new competitors to enter the market. High entry...
High sunk costs limit competition (Siemens SEN) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Siemens SEN) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Siemens SEN) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Siemens SEN) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (Siemens SEN) Patents that cover vital technologies make it difficult for new competitors, because the best...
Geographic factors limit competition (Siemens SEN) If existing competitors have the best geographical locations, new competitors will have a...

What is Porter's Five Forces Analysis?

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