NMBHI - Five Forces Analysis

NMBHI - Five Forces Analysis

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Intensity of Existing Rivalry

Government limits competition (NMBHI) Government policies and regulations can dictate the level of competition within the industry. When...
Fast industry growth rate (NMBHI) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (NMBHI) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Large industry size (NMBHI) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

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

Threat of Substitutes

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

Bargaining Power of Customers

Buyers require special customization (NMBHI) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (NMBHI) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (NMBHI) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (NMBHI) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (NMBHI) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

High capital requirements (NMBHI) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (NMBHI) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Advanced technologies are required (NMBHI) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (NMBHI) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (NMBHI) If existing competitors have the best geographical locations, new competitors will have a...
High switching costs for customers (NMBHI) High switching costs make it difficult for customers to change which products they normally...
High learning curve (NMBHI) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (NMBHI) 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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