Facebook - Five Forces Analysis

Facebook - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

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Low storage costs (Facebook) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Large industry size (Facebook) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Facebook) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (Facebook) 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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App developers have little power (Facebook) Please edit this page to add a description…
Large number of substitute inputs (Facebook) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Facebook) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (Facebook) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (Facebook) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Facebook) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (Facebook) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Facebook) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Facebook) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

MySpace is the closest rival (Facebook) Xing and google+, wheras xing has different focus (business network)
Substitute has lower performance (Facebook) A lower performance product means a customer is less likely to switch from Facebook to another...
Substitute is lower quality (Facebook) A lower quality product means a customer is less likely to switch from Facebook to another product...
Substitute product is inferior (Facebook) An inferior product means a customer is less likely to switch from Facebook to another product or...
High cost of switching to substitutes (Facebook) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Buyers require special customization (Facebook) When customers require special customizations, they are less likely to switch to producers who have...
Product is important to customer (Facebook) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Facebook) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

The network affect limits competition (Facebook) Please edit this page to add a description…
Advanced technologies are required (Facebook) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Strong brand names are important (Facebook) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Facebook) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (Facebook) Patents that cover vital technologies make it difficult for new competitors, because the best...
Customers are loyal to existing brands (Facebook) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

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