Watsons - Five Forces Analysis

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Intensity of Existing Rivalry Large industry size (Watsons) Large industries allow multiple firms and produces to prosper without having to steal market share... Bargaining Power of Suppliers High competition among suppliers (Watsons) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Critical production inputs are similar (Watsons) When critical production inputs are similar, it is easier to mix and match inputs, which reduces... Threat of Substitutes Substantial product differentiation (Watsons) When products and services are very different, customers are less likely to find comparable product... Bargaining Power of Customers Low buyer price sensitivity (Watsons) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Large number of customers (Watsons) When there are large numbers of customers, no one customer tends to have bargaining leverage.... Threat of New Competitors High capital requirements (Watsons) High capital requirements mean a company must spend a lot of money in order to compete in the... High sunk costs limit competition (Watsons) High sunk costs make it difficult for a competitor to enter a new market, because they have to... Industry requires economies of scale (Watsons) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Customers are loyal to existing brands (Watsons) It takes time and money to build a brand. When companies need to spend resources building a brand,... Entry barriers are high (Watsons) 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 watsons'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 watsons's most important five forces statements.