PACKAGING INDUSTRY - Five Forces Analysis

PACKAGING INDUSTRY - Five Forces Analysis

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Intensity of Existing Rivalry

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

Bargaining Power of Suppliers

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High competition among suppliers (PACKAGING INDUSTRY) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Large number of substitute inputs (PACKAGING INDUSTRY) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Diverse distribution channel (PACKAGING INDUSTRY) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (PACKAGING INDUSTRY) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (PACKAGING INDUSTRY) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute product is inferior (PACKAGING INDUSTRY) An inferior product means a customer is less likely to switch from PACKAGING INDUSTRY to another...
Substantial product differentiation (PACKAGING INDUSTRY) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Product is important to customer (PACKAGING INDUSTRY) When customers cherish particular products they end up paying more for that one product. This...
Buyers require special customization (PACKAGING INDUSTRY) When customers require special customizations, they are less likely to switch to producers who have...
Large number of customers (PACKAGING INDUSTRY) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (PACKAGING INDUSTRY) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (PACKAGING INDUSTRY) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (PACKAGING INDUSTRY) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (PACKAGING INDUSTRY) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (PACKAGING INDUSTRY) If existing competitors have the best geographical locations, new competitors will have a...
High learning curve (PACKAGING INDUSTRY) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (PACKAGING 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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