InterContinental Hotel - Five Forces Analysis

InterContinental Hotel - Five Forces Analysis

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Intensity of Existing Rivalry

low
Fast industry growth rate (InterContinental Hotel) When industries are growing revenue quickly, they are less likely to compete, because the total...
Large industry size (InterContinental Hotel) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Large number of substitute inputs (InterContinental Hotel) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (InterContinental Hotel) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (InterContinental Hotel) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (InterContinental Hotel) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (InterContinental Hotel) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substantial product differentiation (InterContinental Hotel) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (InterContinental Hotel) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

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

Threat of New Competitors

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