Investment Banking - Five Forces Analysis

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Short description of Porter's Five Forces analysis for… Intensity of Existing Rivalry goldman sachs morgan stanley Low storage costs When storage costs are low, competitors have a lower risk of having to unload their inventory all at... Government policies limit competition Government policies and regulations can dictate the level of competition within the industry. When... Large industry size Large industries allow multiple firms and produces to prosper without having to steal market share... Bargaining Power of Suppliers Large number of substitute inputs - Investment Banking When there are a large number of substitute inputs, suppliers have less bargaining leverage over... High competition among suppliers High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Low cost of switching suppliers The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching... Inputs have little impact on costs - Investment Banking When inputs are not a big component of costs, suppliers of those inputs have less bargaining power.... Critical production inputs are similar - Investment Banking When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Threat of Substitutes Limited number of substitutes - Investment Banking A limited number of substitutes mean that customers cannot easily find other products or services... High cost of switching to substitutes - Investment Banking Limited number of substitutes means that customers cannot easily switch to other products or... Bargaining Power of Customers Buyers require special customization When customers require special customizations, they are less likely to switch to producers who have... Limited buyer information availability When buyers have limited information, they are at a disadvantage in negotiations with sellers.... Product is important to customer When customers cherish particular products they end up paying more for that one product. This... Limited buyer choice When customers have limited choices they end up paying more for the choices that are available.... Threat of New Competitors High capital requirements High capital requirements mean a company must spend a lot of money in order to compete in the... Strong distribution network required - Investment Banking Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High sunk costs limit competition High sunk costs make it difficult for a competitor to enter a new market, because they have to... Strong brand names are important - Investment Banking If strong brands are critical to compete, then new competitors will have to improve their brand... Industry requires economies of scale - Investment Banking Economies of scale help producers to lower their cost by producing the next unit of output at lower... Geographic factors limit competition - Investment Banking If existing competitors have the best geographical locations, new competitors will have a... Customers are loyal to existing brands - Investment Banking It takes time and money to build a brand. When companies need to spend resources building a brand,... High switching costs for customers - Investment Banking High switching costs make it difficult for customers to change which products they normally... High learning curve for new competitors - Investment Banking When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high 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 investment-banking'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 investment-banking's most important five forces statements.