Sunsilk - Five Forces Analysis

Sunsilk - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Sunsilk) Large industries allow multiple firms and produces to prosper without having to steal market share...
Exit barriers are low (Sunsilk) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Fast industry growth rate (Sunsilk) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

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

Threat of Substitutes

Substantial product differentiation (Sunsilk) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Product is important to customer (Sunsilk) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Sunsilk) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Sunsilk) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Sunsilk) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Sunsilk) If strong brands are critical to compete, then new competitors will have to improve their brand...
Geographic factors limit competition (Sunsilk) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Sunsilk) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (Sunsilk) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Sunsilk) 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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