(INFORMATION TECHNOLOGY , Business ) Perform a detailed Porter\'s Five Forces an
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Question
(INFORMATION TECHNOLOGY , Business )
Perform a detailed Porter's Five Forces analysis for your new Photography business and its website .Use businesses local to your area (if you are out of the area, please note in a footnote your closest metropolitan area). Be sure to highlight entry barriers, switching costs, and substitute products/services. Provide enough information that I might make an informed decision about what forces face your new business. Michael Porter’s Five Forces Model is a useful tool to aid organizations facing the challenging decision of entering a new industry or industry segment. The Five Forces Model helps determine the relative attractiveness of an industry and includes:
o Buyer Power
o Supplier power
o Threat of substitute products or services
o Threat of new entrants
o Rivalry among existing competitors
Here is one website that thoroughly explains Five Forces and will show you examples of how you might build the Five Forces model. shows it in a diagram format: http://www.mindtools.com/pages/article/newTMC_08.htm Be thorough, inclusive, but concise in your analysis. - Plan out your advertising campaign for your photography business and your website. Obviously you want to limit costs and take advantage of technology to advertise your new photography studio. List 8 to 10 ways you will advertise, with a couple sentences explaining each idea, using technology (the web, etc).
Explanation / Answer
For both small and big businesses, managing business effectively is difficult. One of the most essentials skills needed is the ability to assess the competitive environment. Entrepreneur and managers must comprehend the competitive environment of the business.
The Porter’s Five Forces tool is a very powerful tool. It is simple but excellent for judging exactly where power lies. As it helps to understand not only the strength of current competitive position but also the strength of an expected position, it is very useful.
The analysis peeks at the strength of 5 vital forces which affect business competition. The five different forces are:
Supplier power is the ability of vendors to increase prices of your inputs. Buyer power refers to the customers’ power drive down prices. Competitive rivalry is the strength of competition. The threat of substitution is the degree to which different products and services can be used instead of your offering. The threat of new entry is how easily new competitors can enter the market.
Rivalry is high because many well known brands such as Cannon, Sony, and Olympic are the dominant players of the industry. And these competitors are trying to differentiated their products through new features and functions. Rivalry is really unfavorable in the camera industry.
Bargaining Power of Buyers - This force is based on customers' efforts to look for reduced prices, improved product quality, and added services which all will affect competition within an industry. The industry will be less attractive when the greater the power of the customers served by an industry.
Photography Industry - Photography is medium, which make the camera industry moderately unfavorable. Customers have many choices to choose from, so they can easily change their mind and buy camera from other competitors.
besides strong financial and human resource support, is that big companies are more good at combining their other complementary technologies with core know-hows in the digital camera production process. For example, canon, which is also one of the biggest printer manufacturers, bundled its printer and camera together in order to gain more market share by leveraging technology which is already existed. This, no wonder, would put more pressure on other firms which are trying to get a space in this dynamic market. What's more, nowadays, brand name is no longer as important as it used to be in the film camera age. Consumers are more concerned with product quality, screen definition, camera pixel and price rather than brands. However, in some extent, brand loyalty still works expecially in high-end camera market such as the market of Single-Lens Reflex (SLR) digital camera because most of consumers in this market area are professional photographers who are more care about brands and products' stability than mass buyers
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