Carrefour - Five Forces Analysis

Carrefour - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Exit barriers are low (Carrefour) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Government limits competition (Carrefour) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Carrefour) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

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Large number of substitute inputs (Carrefour) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Carrefour) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Carrefour) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Volume is critical to suppliers (Carrefour) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Bargaining Power of Customers

Threat of New Competitors

Strong distribution network required (Carrefour) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Industry requires economies of scale (Carrefour) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Carrefour) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Carrefour) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Carrefour) 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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