Question: FIVE FORCES INDICATOR SHEET 2. Overall Assessment 1. Assess indicators of Each FORCE Yes NO* (Strong, Weak, or Moderate) THREAT OF NEW ENTRANTS 1 Can
| FIVE FORCES INDICATOR SHEET | |||||||||||
| 2. Overall Assessment | |||||||||||
| 1. Assess indicators | of Each FORCE | ||||||||||
| Yes | NO* | (Strong, Weak, or Moderate) | |||||||||
| THREAT OF NEW ENTRANTS | |||||||||||
| 1 | Can new entrants compete effectively without having to build scale? | ||||||||||
| 2 | Have buyers shown a low level of loyalty to existing producers? | ||||||||||
| 3 | Are the costs of entering and competing relatively low? | ||||||||||
| 4 | Can new entrants easily get distribution and access to buyers? | ||||||||||
| 5 | Would buyers have low/no costs to switch to new entrants? | ||||||||||
| 6 | Does the industry seem to be growing and attractive to new entrants? | ||||||||||
| THREAT OF SUBSTITUTES | |||||||||||
| 7 | Are substitutes readily available and affordable? | ||||||||||
| 8 | Do substitutes offer a similar or superior cost/benefit solution? | ||||||||||
| 9 | Can buyers easily switch to and learn to use substitutes? | ||||||||||
| 10 | Have buyers shown a willingness to switch to substitutes? | ||||||||||
| BARGAINING POWER OF BUYERS | |||||||||||
| 11 | Can buyers easily switch between producers? | ||||||||||
| 12 | Have buyers shown a low level of loyalty to individual producers? | ||||||||||
| 13 | Are there only a few large-volume buyers? | ||||||||||
| 14 | Are purchases relatively large, infrequent, and important? | ||||||||||
| 15 | Are producers' goods pretty much the same (i.e. commodity-like)? | ||||||||||
| BARGAINING POWER OF SUPPLIERS | |||||||||||
| 16 | Are most suppliers' goods unique and differentiated? | ||||||||||
| 17 | Is it difficult or costly for producers to switch suppliers? | ||||||||||
| 18 | Are there a limited number of suppliers or is supply limited? | ||||||||||
| 19 | Does the supply account for a major portion of producer costs? | ||||||||||
| RIVALRY AMONG PRODUCERS | |||||||||||
| 20 | Are there many rivals of about the same size and power? | ||||||||||
| 21 | Is the industry declining or experiencing slow growth? | ||||||||||
| 22 | Is it easy for buyers to switch between producers? | ||||||||||
| 23 | Have buyers shown a low level of loyalty to individual producers? | ||||||||||
| 24 | Is it difficult for producers to adjust production if demand changes? | ||||||||||
| 25 | Are producers' goods pretty much the same (i.e. commodity-like)? | ||||||||||
| * Indicator questions are worded such that a "NO" indicates a weak force, i.e. that the force does not have a substantial | |||||||||||
| negative influence on industry profitability. SO - a "YES" is an indicator of a STRONG Force. | |||||||||||
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