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Five Forces Widget Sub-analysis

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Storyboard Description

Five Forces Sub-Analysis - An in-depth look at the factors which influence new entrants to the widget industry.

Storyboard Text

  • No Key Intellectual Property
  • Profitability
  • Economies of Scale
  • While some widget production processes are still patented, many alternatives exist and are widely available for a nominal cost. This benefits new entrants.
  • The widget industry is not remarkably profitable. This will deter new entrants.
  • The low margins on widget production are primarily due to cost of raw materials. Profitability comes through mass production. This impedes new entrants.
  • Internal Regulations
  • Welcome to the 83rd annual WMC convention.
  • Factors Impacting Entry into the Widget Industry
  • Expensive Facilities
  • Since the Great Widget Collapse of 1937, the Widget Manufacture's Consortium instituted stricter marketing rules to protect consumers and burden new entrants.
  • Modern widget production requires significant land, structures, and machinery. These items usually require extensive capital investment, raising barriers to entry.
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