3D Printing Porter s Five Forces Analys
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 well-defined.
Access to distribution channels –easy access to software used for 3d printing. Direct interaction between local consumer/client and producer. 3D printing hubs are building up a 3d society channels.
Industry revenue - According to Wohlers Report 2014, the worldwide 3D printing industry is now expected to grow from $3.07 billion in revenue in 2013 to $12.8 billion by 2018, and exceed $21 billion in worldwide revenue by 2020
Threat of substitute products or services
There are not many substitutes for 3D printing, if anything 3D printing is a substitute for physical models. However, 3D printing may have substitution products such as projectors or holograms in the future. Buyers may eventually look for a more temporary and relative price performance of substitute –may select cheaper alternatives such as regular printing or do it yourself modeling.
Bargaining power of customers (buyers)
Customers will gain tremendous power, as well B2B customers as B2C customers
Buyer information availability - being able to manufacture by themselves or to source parts and products, even services, among new competitors.
Force down price- Cost will be the driving force behind buyer bargaining power as existing channels and substitutes may be
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 well-defined.
Access to distribution channels –easy access to software used for 3d printing. Direct interaction between local consumer/client and producer. 3D printing hubs are building up a 3d society channels.
Industry revenue - According to Wohlers Report 2014, the worldwide 3D printing industry is now expected to grow from $3.07 billion in revenue in 2013 to $12.8 billion by 2018, and exceed $21 billion in worldwide revenue by 2020
Threat of substitute products or services
There are not many substitutes for 3D printing, if anything 3D printing is a substitute for physical models. However, 3D printing may have substitution products such as projectors or holograms in the future. Buyers may eventually look for a more temporary and relative price performance of substitute –may select cheaper alternatives such as regular printing or do it yourself modeling.
Bargaining power of customers (buyers)
Customers will gain tremendous power, as well B2B customers as B2C customers
Buyer information availability - being able to manufacture by themselves or to source parts and products, even services, among new competitors.
Force down price- Cost will be the driving force behind buyer bargaining power as existing channels and substitutes may be