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