GAP Inc. - Five Forces Analysis

Home Five Forces Index GAP Inc. - Five Forces Analysis

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Short description of Porter's Five Forces analysis for… Intensity of Existing Rivalry Large industry size (GAP Inc. ) Large industries allow multiple firms and producers to prosper without having to steal market share... Fast industry growth rate (GAP Inc. ) When industries are growing revenue quickly, they are less likely to compete, because the total... Bargaining Power of Suppliers High Low 1 Large number of substitute inputs (GAP Inc. ) When there are a large number of substitute inputs, suppliers have less bargaining leverage over... Diverse distribution channel (GAP Inc. ) The more diverse distribution channels become the less bargaining power a single distributor will... Volume is critical to suppliers (GAP Inc. ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... High competition among suppliers (GAP Inc. ) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Threat of Substitutes Substantial product differentiation (GAP Inc. ) When products and services are very different, customers are less likely to find comparable product... High cost of switching to substitutes (GAP Inc. ) Limited number of substitutes means that customers cannot easily switch to other products or... Bargaining Power of Customers high Product is important to customer (GAP Inc. ) When customers cherish particular products they end up paying more for that one product. This... Low buyer price sensitivity (GAP Inc. ) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Large number of customers (GAP Inc. ) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Threat of New Competitors product differentiation Strong distribution network required (GAP Inc. ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (GAP Inc. ) High capital requirements mean a company must spend a lot of money in order to compete in the... Strong brand names are important (GAP Inc. ) If strong brands are critical to compete, then new competitors will have to improve their brand... Industry requires economies of scale (GAP Inc. ) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Customers are loyal to existing brands (GAP Inc. ) It takes time and money to build a brand. When companies need to spend resources building a brand,... High learning curve (GAP Inc. ) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (GAP Inc. ) 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 gap-inc'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 gap-inc's most important five forces statements.