Tyre Industry Assignment - Five Forces Analysis

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Intensity of Existing Rivalry fixed cost Relatively few competitors (Tyre Industry Assignment) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Fast industry growth rate (Tyre Industry Assignment) When industries are growing revenue quickly, they are less likely to compete, because the total... Bargaining Power of Suppliers Low concentration of suppliers (Tyre Industry Assignment) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low... Volume is critical to suppliers (Tyre Industry Assignment) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... 98981248149 3 1 Critical production inputs are similar (Tyre Industry Assignment) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Threat of Substitutes Threat from retreading industry In the manufacture of a new tyre, approximately 75%-80% of the manufacturing cost is incurred in... Limited number of substitutes (Tyre Industry Assignment) A limited number of substitutes mean that customers cannot easily find other products or services... High cost of switching to substitutes (Tyre Industry Assignment) Limited number of substitutes means that customers cannot easily switch to other products or... Bargaining Power of Customers 6 1 12 product places the major role Product is important to customer (Tyre Industry Assignment) When customers cherish particular products they end up paying more for that one product. This... Threat of New Competitors High capital requirements (Tyre Industry Assignment) High capital requirements mean a company must spend a lot of money in order to compete in the... High sunk costs limit competition (Tyre Industry Assignment) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Strong brand names are important (Tyre Industry Assignment) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (Tyre Industry Assignment) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (Tyre Industry Assignment) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Geographic factors limit competition (Tyre Industry Assignment) If existing competitors have the best geographical locations, new competitors will have a... Customers are loyal to existing brands (Tyre Industry Assignment) It takes time and money to build a brand. When companies need to spend resources building a brand,... High switching costs for customers (Tyre Industry Assignment) High switching costs make it difficult for customers to change which products they normally... Entry barriers are high (Tyre Industry Assignment) When barriers are high, it is more difficult for new competitors to enter the market. High entry... High learning curve (Tyre Industry Assignment) When the learning curve is high, new competitors must spend time and money studying the market... What is Porter's Five Forces Analysis? WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to tyre-industry-assignment'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 tyre-industry-assignment's most important five forces statements.