Kelloggs - Five Forces Analysis

Kelloggs - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Kelloggs) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Kelloggs) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Low cost of switching suppliers (Kelloggs) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Limited number of substitutes (Kelloggs) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

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Product is important to customer (Kelloggs) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Kelloggs) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

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