Life insurance industry - Five Forces Analysis

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Short description of Porter's Five Forces analysis for… Intensity of Existing Rivalry philippine american and general insurance 1 Low storage costs (Life insurance industry) When storage costs are low, competitors have a lower risk of having to unload their inventory all at... Government limits competition (Life insurance industry) Government policies and regulations can dictate the level of competition within the industry. When... Fast industry growth rate (Life insurance industry) When industries are growing revenue quickly, they are less likely to compete, because the total... Relatively few competitors (Life insurance industry) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Exit barriers are low (Life insurance industry) When exit barriers are low, weak firms are more likely to leave the market, which will increase the... Large industry size (Life insurance industry) Large industries allow multiple firms and produces to prosper without having to steal market share... Bargaining Power of Suppliers 5 4 jhbhbhb Life bbb o 2 Prudential Life insurance Large number of substitute inputs (Life insurance industry) When there are a large number of substitute inputs, suppliers have less bargaining leverage over... High competition among suppliers (Life insurance industry) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Inputs have little impact on costs (Life insurance industry) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power.... Critical production inputs are similar (Life insurance industry) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Volume is critical to suppliers (Life insurance industry) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Low cost of switching suppliers (Life insurance industry) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching... Low concentration of suppliers (Life insurance industry) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low... Diverse distribution channel (Life insurance industry) The more diverse distribution channels become the less bargaining power a single distributor will... Threat of Substitutes Substitute has lower performance (Life insurance industry) A lower performance product means a customer is less likely to switch from Life insurance industry... Substitute is lower quality (Life insurance industry) A lower quality product means a customer is less likely to switch from Life insurance industry to... Substitute product is inferior (Life insurance industry) An inferior product means a customer is less likely to switch from Life insurance industry to... Substantial product differentiation (Life insurance industry) When products and services are very different, customers are less likely to find comparable product... High cost of switching to substitutes (Life insurance industry) Limited number of substitutes means that customers cannot easily switch to other products or... Limited number of substitutes (Life insurance industry) A limited number of substitutes mean that customers cannot easily find other products or services... Bargaining Power of Customers 10 Buyers require special customization (Life insurance industry) When customers require special customizations, they are less likely to switch to producers who have... Low buyer price sensitivity (Life insurance industry) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Limited buyer information availability (Life insurance industry) When buyers have limited information, they are at a disadvantage in negotiations with sellers.... Low dependency on distributors (Life insurance industry) When produces have low dependence, distributors have less bargaining power. Low dependency... Product is important to customer (Life insurance industry) When customers cherish particular products they end up paying more for that one product. This... Large number of customers (Life insurance industry) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Limited buyer choice (Life insurance industry) When customers have limited choices they end up paying more for the choices that are available.... Threat of New Competitors Customers are loyal to existing brands (Life insurance industry) It takes time and money to build a brand. When companies need to spend resources building a brand,... Strong distribution network required (Life insurance industry) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (Life insurance industry) High capital requirements mean a company must spend a lot of money in order to compete in the... High sunk costs limit competition (Life insurance industry) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Strong brand names are important (Life insurance industry) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (Life insurance industry) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (Life insurance industry) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Patents limit new competition (Life insurance industry) Patents that cover vital technologies make it difficult for new competitors, because the best... Geographic factors limit competition (Life insurance industry) If existing competitors have the best geographical locations, new competitors will have a... High switching costs for customers (Life insurance industry) High switching costs make it difficult for customers to change which products they normally... High learning curve (Life insurance industry) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (Life insurance industry) 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 life-insurance-industry's five forces template. See WikiWealth's tutorial for help. 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