GERMANY FIVE FORCES - Five Forces Analysis

GERMANY FIVE FORCES - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (GERMANY FIVE FORCES) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (GERMANY FIVE FORCES) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (GERMANY FIVE FORCES) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Large number of substitute inputs (GERMANY FIVE FORCES) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (GERMANY FIVE FORCES) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (GERMANY FIVE FORCES) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (GERMANY FIVE FORCES) The more diverse distribution channels become the less bargaining power a single distributor will...
Low cost of switching suppliers (GERMANY FIVE FORCES) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Critical production inputs are similar (GERMANY FIVE FORCES) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

Substantial product differentiation (GERMANY FIVE FORCES) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Buyers require special customization (GERMANY FIVE FORCES) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (GERMANY FIVE FORCES) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (GERMANY FIVE FORCES) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (GERMANY FIVE FORCES) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (GERMANY FIVE FORCES) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Strong brand names are important (GERMANY FIVE FORCES) If strong brands are critical to compete, then new competitors will have to improve their brand...
Customers are loyal to existing brands (GERMANY FIVE FORCES) 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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