Cadbury - Five Forces Analysis

Cadbury - Five Forces Analysis

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Intensity of Existing Rivalry

Exit barriers are low (Cadbury ) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

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Diverse distribution channel (Cadbury ) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Cadbury ) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....

Threat of Substitutes

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

Bargaining Power of Customers

Low dependency on distributors (Cadbury ) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Cadbury ) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Cadbury ) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

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Strong distribution network required (Cadbury ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High sunk costs limit competition (Cadbury ) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Cadbury ) If strong brands are critical to compete, then new competitors will have to improve their brand...
Customers are loyal to existing brands (Cadbury ) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Cadbury ) 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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