Video Game Industry - Five Forces Analysis

Video Game Industry - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Video Game Industry) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Video Game Industry) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

2
One
Large number of substitute inputs (Video Game Industry) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
Diverse distribution channel (Video Game Industry) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (Video Game Industry) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Critical production inputs are similar (Video Game Industry) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

Substitute has lower performance (Video Game Industry) A lower performance product means a customer is less likely to switch from Video Game Industry to...
Substantial product differentiation (Video Game Industry) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Low buyer price sensitivity (Video Game Industry) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Video Game Industry) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Video Game Industry) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

40
Strong distribution network required (Video Game Industry) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High sunk costs limit competition (Video Game Industry) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
High capital requirements (Video Game Industry) High capital requirements mean a company must spend a lot of money in order to compete in the...
Advanced technologies are required (Video Game Industry) Advanced technologies make it difficult for new competitors to enter the market because they have to...
High learning curve (Video Game Industry) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Video Game Industry) 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 video-game-industry'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 video-game-industry's most important five forces statements.