Tim hortons - Five Forces Analysis

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Intensity of Existing Rivalry Low storage costs (Tim hortons) When storage costs are low, competitors have a lower risk of having to unload their inventory all at... Large industry size (Tim hortons) Large industries allow multiple firms and produces to prosper without having to steal market share... Exit barriers are low (Tim hortons) When exit barriers are low, weak firms are more likely to leave the market, which will increase the... Relatively few competitors (Tim hortons) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Fast industry growth rate (Tim hortons) When industries are growing revenue quickly, they are less likely to compete, because the total... Government limits competition (Tim hortons) Government policies and regulations can dictate the level of competition within the industry. When... Bargaining Power of Suppliers 5 9 0 Tim hortons:kk Tim hortons:svd Large number of substitute inputs (Tim hortons) When there are a large number of substitute inputs, suppliers have less bargaining leverage over... High competition among suppliers (Tim hortons) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Low concentration of suppliers (Tim hortons) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low... Diverse distribution channel (Tim hortons) The more diverse distribution channels become the less bargaining power a single distributor will... Inputs have little impact on costs (Tim hortons) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power.... Critical production inputs are similar (Tim hortons) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Volume is critical to suppliers (Tim hortons) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Low cost of switching suppliers (Tim hortons) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching... Threat of Substitutes Low Substitute has lower performance (Tim hortons) A lower performance product means a customer is less likely to switch from Tim hortons to another... Substitute is lower quality (Tim hortons) A lower quality product means a customer is less likely to switch from Tim hortons to another... Substantial product differentiation (Tim hortons) When products and services are very different, customers are less likely to find comparable product... Substitute product is inferior (Tim hortons) An inferior product means a customer is less likely to switch from Tim hortons to another product or... High cost of switching to substitutes (Tim hortons) Limited number of substitutes means that customers cannot easily switch to other products or... Limited number of substitutes (Tim hortons) A limited number of substitutes mean that customers cannot easily find other products or services... Bargaining Power of Customers Buyers require special customization (Tim hortons) When customers require special customizations, they are less likely to switch to producers who have... Low buyer price sensitivity (Tim hortons) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Limited buyer information availability (Tim hortons) When buyers have limited information, they are at a disadvantage in negotiations with sellers.... Low dependency on distributors (Tim hortons) When produces have low dependence, distributors have less bargaining power. Low dependency... Product is important to customer (Tim hortons) When customers cherish particular products they end up paying more for that one product. This... Large number of customers (Tim hortons) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Limited buyer choice (Tim hortons) When customers have limited choices they end up paying more for the choices that are available.... Threat of New Competitors High capital requirements (Tim hortons) High capital requirements mean a company must spend a lot of money in order to compete in the... Strong distribution network required (Tim hortons) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High sunk costs limit competition (Tim hortons) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Strong brand names are important (Tim hortons) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (Tim hortons) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (Tim hortons) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Geographic factors limit competition (Tim hortons) If existing competitors have the best geographical locations, new competitors will have a... Patents limit new competition (Tim hortons) Patents that cover vital technologies make it difficult for new competitors, because the best... Customers are loyal to existing brands (Tim hortons) It takes time and money to build a brand. When companies need to spend resources building a brand,... High switching costs for customers (Tim hortons) High switching costs make it difficult for customers to change which products they normally... High learning curve (Tim hortons) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (Tim hortons) 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 tim-hortons'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 tim-hortons's most important five forces statements.