Col - Five Forces Analysis

Col - Five Forces Analysis

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Intensity of Existing Rivalry

Bargaining Power of Suppliers

Large number of substitute inputs (Col) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Col) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...

Threat of Substitutes

Substitute has lower performance (Col) A lower performance product means a customer is less likely to switch from Col to another product or...
Substitute is lower quality (Col) A lower quality product means a customer is less likely to switch from Col to another product or...
Substitute product is inferior (Col) An inferior product means a customer is less likely to switch from Col to another product or...
Substantial product differentiation (Col) When products and services are very different, customers are less likely to find comparable product...
Limited number of substitutes (Col) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Buyers require special customization (Col) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Col) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Low dependency on distributors (Col) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (Col) When customers cherish particular products they end up paying more for that one product. This...
Limited buyer choice (Col) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

Strong distribution network required (Col) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Col) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Col) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Col) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Col) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Col) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (Col) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Col) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Col) High switching costs make it difficult for customers to change which products they normally...
Entry barriers are high (Col) 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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