Toys - Five Forces Analysis

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Short description of Porter's Five Forces analysis for… Intensity of Existing Rivalry 3 Large industry size (Toys) Large industries allow multiple firms and produces to prosper without having to steal market share... Fast industry growth rate (Toys) When industries are growing revenue quickly, they are less likely to compete, because the total... Bargaining Power of Suppliers Suppliers HIGH Large number of substitute inputs (Toys) When there are a large number of substitute inputs, suppliers have less bargaining leverage over... High competition among suppliers (Toys) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Low concentration of suppliers (Toys) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low... Inputs have little impact on costs (Toys) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power.... Low cost of switching suppliers (Toys) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching... Threat of Substitutes Substantial product differentiation (Toys) When products and services are very different, customers are less likely to find comparable product... Bargaining Power of Customers 2 Threat of New Competitors Strong distribution network required (Toys) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High capital requirements (Toys) High capital requirements mean a company must spend a lot of money in order to compete in the... Strong brand names are important (Toys) If strong brands are critical to compete, then new competitors will have to improve their brand... Industry requires economies of scale (Toys) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Entry barriers are high (Toys) 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 toys'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 toys's most important five forces statements.