Visa - Five Forces Analysis

Visa - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Relatively few competitors (Visa) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Large industry size (Visa) Large industries allow multiple firms and produces to prosper without having to steal market share...
Government limits competition (Visa) Government policies and regulations can dictate the level of competition within the industry. When...
Low storage costs (Visa) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...

Bargaining Power of Suppliers

Visa spends less on technology than manpower Visa spends more on personnel than hardware technology and as Visa struggles to find enough...
Inputs have little impact on costs (Visa) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....

Threat of Substitutes

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Credit history deters substitutes (Visa) Please edit this page to add a description…
Substitute product is inferior (Visa) An inferior product means a customer is less likely to switch from Visa to another product or...
High cost of switching to substitutes (Visa) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (Visa) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Large number of customers (Visa) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Collective Bargaining of Buyers The collective bargaining of buyers has a potential to impact profits for Visa. The banks before...
Buyers want rewards (Visa) Please edit this page to add a description…
Buyers have low sensitivity to credit card interest rates (Visa) Please edit this page to add a description…
Buyers require special customization (Visa) When customers require special customizations, they are less likely to switch to producers who have...
Limited buyer choice (Visa) When customers have limited choices they end up paying more for the choices that are available....
Product is important to customer (Visa) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

Strong distribution network required (Visa) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Visa) If strong brands are critical to compete, then new competitors will have to improve their brand...
Must be omnipresent (Visa) Please edit this page to add a description…
High capital requirements (Visa) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Visa) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Industry requires economies of scale (Visa) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Visa) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Visa) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Visa) High switching costs make it difficult for customers to change which products they normally...
High learning curve (Visa) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Visa) 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 visa'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 visa's most important five forces statements.