Restaurant - Five Forces Analysis

Restaurant - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Restaurant) When industries are growing revenue quickly, they are less likely to compete, because the total...
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Large industry size (Restaurant) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

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Volume is critical to suppliers (Restaurant) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Diverse distribution channel (Restaurant) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (Restaurant) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

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

Bargaining Power of Customers

Limited buyer information availability (Restaurant) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Product is important to customer (Restaurant) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Restaurant) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Restaurant) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

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

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to restaurant's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up restaurant's most important five forces statements.