Alibaba - Five Forces Analysis

Alibaba - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

Volume is critical to suppliers (Alibaba) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Diverse distribution channel (Alibaba) The more diverse distribution channels become the less bargaining power a single distributor will...

Threat of Substitutes

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

Bargaining Power of Customers

Buyers require special customization (Alibaba) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (Alibaba) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Alibaba) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Alibaba) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Alibaba) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Alibaba) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Geographic factors limit competition (Alibaba) If existing competitors have the best geographical locations, new competitors will have a...
Patents limit new competition (Alibaba) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Alibaba) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (Alibaba) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Alibaba) 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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