Read carefully the section of the text on Porters five force

Read carefully the section of the text on Porter\'s five forces model. Apply the five forces model to the video market, then state and discuss your analysis and those of other students. Do you agree or disagree and why?

Solution

The Porter\'s five forces model helps us in determining if a perticular business will be profitable to us or not. This model describe the five specific factors that helps us in identifying whether or not a business can be profitable, on the bases of the other business exist in the market.

Applying Five Force model to Video Market:

The analysis of applying five force model to the video market is given in following points:

i) First we will check for the current competitors in the market, its give the picture of current competition in the market. In case of video market we have lots of competitors available in the market, so we have a healthy competition in the market.

ii)Next we will analyize , how much bargaining capability our suppliers have. In case of video market, suppliers can go the low prices as well so. And we also have very high competition in the market, so it will decrease the profitability.

iii)Now we will analyize the bargaining power of the customer, its include how much a customer can pay for the product. In case of video market, we have varioius competition, so the customer must be willing to pay less money for the product.

iv) Here we analyize that how easy it is for the new player to come into the market. In case of video market, its not very difficult to come in to the market. Any one can easily comes and join the market.

v) Substitue products and services also need to analyize in case of applying the five force model. In case of video market its also applicable.