Meat Packing Industry - Five Forces Analysis

Meat Packing Industry - Five Forces Analysis

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Intensity of Existing Rivalry

Low storage costs (Meat Packing Industry) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Relatively few competitors (Meat Packing Industry) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Exit barriers are low (Meat Packing Industry) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Government limits competition (Meat Packing Industry) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Meat Packing Industry) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Meat Packing Industry) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

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Large number of substitute inputs (Meat Packing Industry) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
High competition among suppliers (Meat Packing Industry) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low concentration of suppliers (Meat Packing Industry) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Diverse distribution channel (Meat Packing Industry) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Meat Packing Industry) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Volume is critical to suppliers (Meat Packing Industry) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Critical production inputs are similar (Meat Packing Industry) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (Meat Packing Industry) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute has lower performance (Meat Packing Industry) A lower performance product means a customer is less likely to switch from Meat Packing Industry to...
Substitute is lower quality (Meat Packing Industry) A lower quality product means a customer is less likely to switch from Meat Packing Industry to...
Substantial product differentiation (Meat Packing Industry) When products and services are very different, customers are less likely to find comparable product...
Substitute product is inferior (Meat Packing Industry) An inferior product means a customer is less likely to switch from Meat Packing Industry to another...
Limited number of substitutes (Meat Packing Industry) A limited number of substitutes mean that customers cannot easily find other products or services...
High cost of switching to substitutes (Meat Packing Industry) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Large number of customers (Meat Packing Industry) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Buyers require special customization (Meat Packing Industry) When customers require special customizations, they are less likely to switch to producers who have...
Limited buyer information availability (Meat Packing Industry) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Low buyer price sensitivity (Meat Packing Industry) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Meat Packing Industry) When customers cherish particular products they end up paying more for that one product. This...
Low dependency on distributors (Meat Packing Industry) When produces have low dependence, distributors have less bargaining power. Low dependency...
Limited buyer choice (Meat Packing Industry) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

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

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