Deutsche Telekom AG - Five Forces Analysis

Deutsche Telekom AG - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Deutsche Telekom AG) Large industries allow multiple firms and produces to prosper without having to steal market share...
Government limits competition (Deutsche Telekom AG) Government policies and regulations can dictate the level of competition within the industry. When...
Relatively few competitors (Deutsche Telekom AG) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

High competition among suppliers (Deutsche Telekom AG) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Critical production inputs are similar (Deutsche Telekom AG) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Large number of substitute inputs (Deutsche Telekom AG) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...

Threat of Substitutes

Limited number of substitutes (Deutsche Telekom AG) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Product is important to customer (Deutsche Telekom AG) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Deutsche Telekom AG) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

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