Flour Milling Industry - Five Forces Analysis

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Intensity of Existing Rivalry Large industry size (Flour Milling Industry ) Large industries allow multiple firms and produces to prosper without having to steal market share... Relatively few competitors (Flour Milling Industry ) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Bargaining Power of Suppliers Flour High competition among suppliers (Flour Milling Industry ) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Volume is critical to suppliers (Flour Milling Industry ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Critical production inputs are similar (Flour Milling Industry ) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Low cost of switching suppliers (Flour Milling Industry ) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching... Threat of Substitutes Substitute is lower quality (Flour Milling Industry ) A lower quality product means a customer is less likely to switch from **Flour Milling Industry **... Substantial product differentiation (Flour Milling Industry ) When products and services are very different, customers are less likely to find comparable product... Substitute product is inferior (Flour Milling Industry ) An inferior product means a customer is less likely to switch from **Flour Milling Industry ** to... Limited number of substitutes (Flour Milling Industry ) A limited number of substitutes mean that customers cannot easily find other products or services... Bargaining Power of Customers Flour Low buyer price sensitivity (Flour Milling Industry ) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Product is important to customer (Flour Milling Industry ) When customers cherish particular products they end up paying more for that one product. This... Limited buyer choice (Flour Milling Industry ) When customers have limited choices they end up paying more for the choices that are available.... Large number of customers (Flour Milling Industry ) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Threat of New Competitors Strong distribution network required (Flour Milling Industry ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (Flour Milling Industry ) High capital requirements mean a company must spend a lot of money in order to compete in the... High sunk costs limit competition (Flour Milling Industry ) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Advanced technologies are required (Flour Milling Industry ) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (Flour Milling Industry ) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Geographic factors limit competition (Flour Milling Industry ) If existing competitors have the best geographical locations, new competitors will have a... Entry barriers are high (Flour Milling Industry ) When barriers are high, it is more difficult for new competitors to enter the market. High entry... What is Porter's Five Forces Analysis? WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to flour-milling-industry's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up flour-milling-industry's most important five forces statements.