Five Forces Diagram Example
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Five Forces Diagram Example

Threat of newentrantsBargaining power of buyersThreat of substitute productsBargaining power of suppliesTHREAT OF NEW ENTRANTS:Barriers to entryEconomies of scaleBrand loyaltyCapital requirementsCumulative experienceGovernment policiesAccess to distribution channelSwitching costsRIVALRY AMONG EXISTING COMPETITORS:Number of competitorsDiversity of competitorsIndustry concentrationIndustry growthQuality DifferenceBrand LoyaltyBarriers to exitSwitching costsBARGAINING POWER OF SUPPLIERS:Number and size of suppliersUniqueness of each supplier's productFocal company's ability to substiuteTHREAT OF SUBSTITUTE PRODUCTS:Number of substitute products availableBuyer prospensity to substituteRelative price performance of substituteSwitching costsBARGAINING POWER OF BUYERS:Number of customersSize of each customer orderDifferences between competitorsPrice sensitivitySwitching costsPorter's Five Forces
publish time: 2021-07-23

The example here provides an in-depth description of the five forces and those parameters that decide whether the power of these forces is high, low, or medium. For example, the threats of new entrants depend on barriers to entry, brand loyalty, economies of scale, cumulative experience, government policies, and other things.

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