Essay on 3D Printing Porter s Five Forces Analys
646 WordsDec 21, 20143 Pages
PORTER’S FIVE FORCES
Threat of new entrants
Existence of barriers to entry are low Few new firms can enter and non-performing firms can exit easily 3D printing will lower barriers to market entry and will enable innovative start-ups to target the market using crowd-funding.. Free R&D also dramatically lowers the barriers to entry.
Capital requirements - Lower costs of technology equipment. First, AM reduces the capital required to achieve economies of scale. Second, it increases flexibility and reduces the capital required to achieve scope..
Government policy - Although 3D printing opens up new practical challenges, protection of 3D designs and objects under intellectual property, the policy questions about 3D printers are not…show more content… Bargaining power of suppliers
Limited number of suppliers –In the case of 3D printing, early bargaining power of suppliers will be strong as there may be many buyers of the technology and a limited number of suppliers.
Growing market for materials- Suppliers in marketplace may impact buyers through lower quality, higher cost, or limited availability of products . Considering that a great segment of people today want to own and use 3D printers, one is likely to profit by selling 3D supplies like new manufacturing techniques equipment, specific software and specific material vendors.
Intensity of competitive rivalry
As with any new technology, 3D printing will encounter competition among vendors and across all tiers of quality. As the product becomes easier to duplicate and manufacture and as equipment costs go down, the number of competitors will increase..
Main competitors – “3D systems” and “Stratasys”- 3DSystems and Stratasys, leaders of the 3D printing manufacturing market, have managed to counter the threat of competition by acquiring strategic companies early in their life cycle. The two leaders’ priority is to accelerate market share, marketing and R&D while accepting temporary earnings reductions, to strengthen their marketplace leadership