Virgin Atlantic - Five Forces Analysis

Virgin Atlantic - Five Forces Analysis

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Intensity of Existing Rivalry

Government limits competition (Virgin Atlantic) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Virgin Atlantic) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Virgin Atlantic) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

High competition among suppliers (Virgin Atlantic) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (Virgin Atlantic) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low concentration of suppliers (Virgin Atlantic) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...

Threat of Substitutes

Substitute is lower quality (Virgin Atlantic) A lower quality product means a customer is less likely to switch from Virgin Atlantic to another...
Limited number of substitutes (Virgin Atlantic) A limited number of substitutes mean that customers cannot easily find other products or services...
Substitute has lower performance (Virgin Atlantic) A lower performance product means a customer is less likely to switch from Virgin Atlantic to...

Bargaining Power of Customers

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

Threat of New Competitors

High capital requirements (Virgin Atlantic) High capital requirements mean a company must spend a lot of money in order to compete in the...
Advanced technologies are required (Virgin Atlantic) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Geographic factors limit competition (Virgin Atlantic) If existing competitors have the best geographical locations, new competitors will have a...
Patents limit new competition (Virgin Atlantic) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Virgin Atlantic) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (Virgin Atlantic) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Virgin Atlantic) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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