The Porter Five Forces Analysis Performed On the Case Study of the Music Industry In 2006
The Porter Five Forces Analysis Performed On the Case Study of the Music Industry In 2006 - Article Example
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The paper tells that market attractiveness in this context refers to the general industry gain of profitability. On the other hand, in an unattractive industry or market setup, is one that does not conform to the five forces analysis, since it offers a projection of losses within the market in the long run. In other words, an unattractive market would be one that is approaching the level of "pure competition", that is, the available profits for all firms within the market are depicted at a normal profit. The porter five forces analytical model has the following components the facilitate the examination of a particular product within the industry: The first part of the porter five forces model is the Internal Rivalry, which explains the competitive level within the industry. In this particular scenario, the intensity of competition within the music industry in that specific year is high because given the numerous number of players in the music industry. The major players in this market include Universal Music Group which owns 26% share of the music global market and has the prospects of merging with Sony BMG Music Entertainment to increase the production rate of publishing music media. The merging of companies within a market tends to consolidate the industry. For example, in the year of 2004, the entertainment and recording companies, Sony Music and the BMG, merged to change the equilibrium within the competitive market. The major companies highlighted in the case study regarding the prospected changes in the music industry form mergers with the expectation of each company trying to favorably compete with each other by developing new products or increasing the mass of production in the market all the time. For instance, the 50-50 joint venture between Sony and BMG Music Entertainment which made it the second largest major in the music industry.
This paper will attempt to outline the porter five forces analysis performed on the case study of the Music industry in 2006, which major highlights on the business processes and approaches that would change the market forces dealing in music…
1. Introduction to Industry It is worthwhile to mention that US retail industry comprises of many mass merchandise business chains such as Wal-Mart, Kroger, Home Depot, Target, Cost Co, Best Buy, Safeway, Whole Foods etc. According to Farfan (2, 2010), there are five US based retailers in the list of top ten retail chains across the globe.
Furthermore, this particular industry analysis framework make managers easily track down the presence of potential rivalry within a given industry, potential threats of new entrants or new businesses that wish to enter the chemical manufacturing industry aside from identifying threats for product substitution.
Case Study 1.0. Porter 5 Forces industry analysis of the PC industry Through incessant transitions in the industrial periphery, the Personal Computers (PC) industry has today emerged as one of the most dynamic and influential business sectors in the global arena.
The relationship between the political forces in the United Kingdom and the banking industry is subject to change. With that in mind, it must be understood that past experience with regards to the banking industry cannot and should not be determined to be equivalent to future expectations of how the industry will evolve and continue to be manifested.
The model gives emphasis on the competitive strategy that an organization implements in accordance to their understanding of the structures in the industry and the changes they undergo (Bakos, 1998). Porter's has initiated the five forces that formed each industry and each market.
Carrefour is a retailer company operating in thirty-two countries and is the largest international food retailer. Its internationalization process has taken a period of 40 years and hence, is rated as a very successful business. The company operates hypermarkets, supermarkets, discount and convenient stores as their main formats of sale.
These buyers buy very infrequently and so they are not necessarily attached to one product. However, the advantage to the firm is that the buyers are attached to the brand because the brand is as important, or even more important than the
Furthermore, this industry is characterized by very high oil prices, which makes it difficult for airlines to post profits (Mouawad, 2). This is because they will have to travel when their capacity is full, that when the companies will be guaranteed of some profits. It
Revenues from the hospitality industry depend on customer traffic, and only players that have gained competitive advantage can survive the increasing competition. In the case of Mama's on Washington Square, gaining competitive advantage has been the main priority. Mama’s needs to exhibit a level of differentiation to gain the competitive advantage.
5 pages (1250 words)Research Paper
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