Auto Parts Wholesaling - Five Forces Analysis

Auto Parts Wholesaling - Five Forces Analysis

Last Updated by wbot | Update This Page Now

Intensity of Existing Rivalry

Low storage costs (Auto Parts Wholesaling ) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Exit barriers are low (Auto Parts Wholesaling ) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Large industry size (Auto Parts Wholesaling ) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

a
jm
1
Large number of substitute inputs (Auto Parts Wholesaling ) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Auto Parts Wholesaling ) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Critical production inputs are similar (Auto Parts Wholesaling ) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Auto Parts Wholesaling ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Auto Parts Wholesaling ) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (Auto Parts Wholesaling ) A lower performance product means a customer is less likely to switch from **Auto Parts Wholesaling...
Substitute product is inferior (Auto Parts Wholesaling ) An inferior product means a customer is less likely to switch from **Auto Parts Wholesaling ** to...
Substitute is lower quality (Auto Parts Wholesaling ) A lower quality product means a customer is less likely to switch from **Auto Parts Wholesaling **...
Substantial product differentiation (Auto Parts Wholesaling ) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Low buyer price sensitivity (Auto Parts Wholesaling ) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Auto Parts Wholesaling ) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Auto Parts Wholesaling ) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Auto Parts Wholesaling ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Advanced technologies are required (Auto Parts Wholesaling ) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Auto Parts Wholesaling ) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (Auto Parts Wholesaling ) Patents that cover vital technologies make it difficult for new competitors, because the best...
Geographic factors limit competition (Auto Parts Wholesaling ) If existing competitors have the best geographical locations, new competitors will have a...
High switching costs for customers (Auto Parts Wholesaling ) High switching costs make it difficult for customers to change which products they normally...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to auto-parts-wholesaling'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 auto-parts-wholesaling's most important five forces statements.