Susanto - Engine Dep. - Five Forces Analysis

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Intensity of Existing Rivalry Low storage costs (Susanto - Engine Dep.) When storage costs are low, competitors have a lower risk of having to unload their inventory all at... Fast industry growth rate (Susanto - Engine Dep.) When industries are growing revenue quickly, they are less likely to compete, because the total... Government limits competition (Susanto - Engine Dep.) Government policies and regulations can dictate the level of competition within the industry. When... Large industry size (Susanto - Engine Dep.) Large industries allow multiple firms and produces to prosper without having to steal market share... Relatively few competitors (Susanto - Engine Dep.) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Exit barriers are low (Susanto - Engine Dep.) When exit barriers are low, weak firms are more likely to leave the market, which will increase the... Bargaining Power of Suppliers Large number of substitute inputs (Susanto - Engine Dep.) When there are a large number of substitute inputs, suppliers have less bargaining leverage over... Low concentration of suppliers (Susanto - Engine Dep.) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low... High competition among suppliers (Susanto - Engine Dep.) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Diverse distribution channel (Susanto - Engine Dep.) The more diverse distribution channels become the less bargaining power a single distributor will... Inputs have little impact on costs (Susanto - Engine Dep.) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power.... Critical production inputs are similar (Susanto - Engine Dep.) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Volume is critical to suppliers (Susanto - Engine Dep.) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Low cost of switching suppliers (Susanto - Engine Dep.) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching... Threat of Substitutes Substitute is lower quality (Susanto - Engine Dep.) A lower quality product means a customer is less likely to switch from Susanto - Engine Dep. to... Substitute has lower performance (Susanto - Engine Dep.) A lower performance product means a customer is less likely to switch from Susanto - Engine Dep. to... Substantial product differentiation (Susanto - Engine Dep.) When products and services are very different, customers are less likely to find comparable product... Substitute product is inferior (Susanto - Engine Dep.) An inferior product means a customer is less likely to switch from Susanto - Engine Dep. to another... High cost of switching to substitutes (Susanto - Engine Dep.) Limited number of substitutes means that customers cannot easily switch to other products or... Limited number of substitutes (Susanto - Engine Dep.) A limited number of substitutes mean that customers cannot easily find other products or services... Bargaining Power of Customers Buyers require special customization (Susanto - Engine Dep.) When customers require special customizations, they are less likely to switch to producers who have... Low buyer price sensitivity (Susanto - Engine Dep.) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Limited buyer information availability (Susanto - Engine Dep.) When buyers have limited information, they are at a disadvantage in negotiations with sellers.... Large number of customers (Susanto - Engine Dep.) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Limited buyer choice (Susanto - Engine Dep.) When customers have limited choices they end up paying more for the choices that are available.... Low dependency on distributors (Susanto - Engine Dep.) When produces have low dependence, distributors have less bargaining power. Low dependency... Product is important to customer (Susanto - Engine Dep.) When customers cherish particular products they end up paying more for that one product. This... Threat of New Competitors Strong distribution network required (Susanto - Engine Dep.) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (Susanto - Engine Dep.) High capital requirements mean a company must spend a lot of money in order to compete in the... High sunk costs limit competition (Susanto - Engine Dep.) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Strong brand names are important (Susanto - Engine Dep.) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (Susanto - Engine Dep.) Advanced technologies make it difficult for new competitors to enter the market because they have to... Patents limit new competition (Susanto - Engine Dep.) Patents that cover vital technologies make it difficult for new competitors, because the best... Industry requires economies of scale (Susanto - Engine Dep.) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Geographic factors limit competition (Susanto - Engine Dep.) If existing competitors have the best geographical locations, new competitors will have a... Customers are loyal to existing brands (Susanto - Engine Dep.) It takes time and money to build a brand. When companies need to spend resources building a brand,... High switching costs for customers (Susanto - Engine Dep.) High switching costs make it difficult for customers to change which products they normally... High learning curve (Susanto - Engine Dep.) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (Susanto - Engine Dep.) When barriers are high, it is more difficult for new competitors to enter the market. High entry... What is Porter's Five Forces Analysis? WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to susanto-engine-dep'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 susanto-engine-dep's most important five forces statements.