Chapter 1 Assignment

Chapter 1 Assignment - Jessica Yin CIS2200H- XZ24H Prof....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CIS2200H- XZ24H Prof. Izen Chapter 1 Assignment- Assignments and Exercises 1. Porter’s Five Forces Model helps business understand the attractiveness of an industry and it’s competitive pressure in terms of buyer power, supplier power, the threat of substitute products or services, the threat of new entrants, and rivalry among existing competitors. After evaluating the movie rental industry using Porter’s Five Forces Model, I feel as if it is not an attractive industry to enter. The first reason is because buyer power is extremely high in this industry on many levels. Buyers have many choices between what movies they watch, the medium through which the movies are watched, and most importantly, where they get their movies. There are many options for buyers to choose from when deciding how to get their movie rentals. They could walk down the street and physically rent a movie, rent one directly from their TV, or use rental websites such as Netflix. If anyone were to enter this industry, they would need to create a competitive advantage that hasn’t already been implemented by the many companies in the industry. There are so many choices for buyers that it would be extremely hard to create this competitive advantage and keep customers. Because buyers have such a high buying power in this industry, it makes supplier power extremely low. Supplier power would be extremely low because of all the choices that buyers possess. Another reason is because there is a high threat of substitute products and services in the movie rental industry. As stated above, there is a multitude of choices that exists in the rental industry. A movie rented from Netflix, your TV, or your rental store would be exactly the same. Therefore, the companies’ products are all substitutes for another’s. For example, in place of a
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/29/2012 for the course CIS 220 taught by Professor Izen during the Spring '12 term at CUNY Baruch.

Page1 / 4

Chapter 1 Assignment - Jessica Yin CIS2200H- XZ24H Prof....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online