| | | | | | FIVE FORCES INDICATOR SHEET |
| | | | | | | | | | | | 2. Overall Assessment |
| | | | | | | | | 1. Assess indicators | | | of Each FORCE |
| | | | | | | | | Yes | NO* | | (Strong, Weak, or Moderate) |
| | THREAT OF NEW ENTRANTS |
| | 1 | Is it easy for small firms to compete with the prices of larger firms? |
| | 2 | Are producer goods commodity-like? |
| | 3 | Are the fixed costs of entering low? |
| | 4 | Are legal and regulatory barriers nonexistent? |
| | 5 | Is it easy for buyers to switch to alternative producers? |
| | 6 | Is distribution easily available to any new firm? |
| | | ~Is it easy for new entrants to come in and compete?~ |
| | THREAT OF SUBSTITUTES |
| | 7 | Are substitutes easy to identify and readily available? |
| | 8 | Can buyers easily switch to and learn to use substitutes? |
| | 9 | Do substitutes offer a similar or superior cost/benefit solution? |
| | 10 | Have buyers shown a propensity to switch to substitutes? |
| | | ~If producers try to charge more, will buyers go to substitutes?~ |
| | BARGAINING POWER OF BUYERS |
| | 11 | Are there only a few large buyers for the producers? |
| | 12 | Are purchases relatively large, infrequent, and important? |
| | 13 | Are producers' goods commodity-like or somewhat undifferentiated? |
| | 14 | Can buyers easily switch between producers? |
| | 15 | Do buyers have easy access to information about producers' goods? |
| | 16 | Is it easy for buyers to produce the goods themselves? |
| | | ~Are buyers largely captive to the pricing decisions of producers?" |
| | BARGAINING POWER OF SUPPLIERS |
| | 17 | Are there a limited number of key suppliers? |
| | 18 | Are suppliers' goods unique and differentiated? |
| | 19 | Would it be difficult for producers to backward integrate? |
| | 20 | Is it difficult or costly for producers to switch suppliers? |
| | | ~How easily can suppliers increase price of supplies?~ |
| | RIVALRY AMONG PRODUCERS |
| | 21 | Are there a limited number of producers of about the same size? |
| | 22 | Is industry growth limited or slow? |
| | 23 | Are producers' goods commodity-like or somewhat undifferentiated? |
| | 24 | Do producers have high fixed costs? |
| | 25 | Is it difficult for producers to adjust capacity and scale? |
| | | ~Are producers forced into intense battles for buyers?~ |
| | | Q: How does each force affect the ability of a firm to charge a higher price and capture premium profit levels? |
| | | | STRONG means the force INHIBITS producer profitability. |
| | * 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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CopyofFiveForcesindicatorssheet.xlsx
