Enron Collapse Porters Five Forces Analysis Case Study Help
Enron Collapse Porters Five Forces Analysis being associated with various company models is part of 3 distinct markets. It belongs to the theatre market where it has major competitors like Regal. In addition, its involvement in the movie service makes it part of the market where competitors exists from players like Disney/Pixar and Cloumbia. At a broader level Enron Collapse Porters Five Forces Analysis can also be considered a gamer in the entertainment industry where competitors is there from generic sources of home entertainment such as video gaming zones, Zoos, theme park and museums. The reality that Enron Collapse Porters Five Forces Analysis has a huge scope when it pertains to discussion about its external environment causes obstacles in the form of specifying strategies which can be used to counter the relocations of the competitive market. We would be studying Enron Collapse Porters Five Forces Analysis external environment with the help of Porter's five forces to highlight the overall competitive environment that Enron Collapse Porters Five Forces Analysis deals with.
Threat of Substitutes:
If we look at the danger of substitutes, we can see how Enron Collapse Porters Five Forces Analysis technology has an increasing threat of alternatives such as HDTV, HD-DVD and Cable/Satellite. While these substitutes may be using alternative methods of viewing motion pictures, there are other alternatives which offer extra hazards in the form of the web and other entertainment sources. As talked about earlier, Enron Collapse Porters Five Forces Analysis undefined market limits lead to hazards of substitution from numerous angles.
Threat of New Entrants:
As far as the threat of new entrants is worried, the high capital requirements required for producing movies with the additional cost of making payments to well-known film starts makes it tough for brand-new entrants to make their place immediately. Additionally, the problem of distributing material makes entry of new players rather hard.
The industry provides ease of entry as far as small scale production is concerned while at the very same time the schedule of several cable channels provides ease of distribution. Additionally, with the web offering platforms such as YouTube, entry of brand-new channels has become easier.
Degree of Rivalry:
We would have the ability to access the degree of competition in the industry after we have recognized the possible competitors of Enron Collapse Porters Five Forces Analysis. The fact that players like Regal, Sony and Disney are potential competitors of Enron Collapse Porters Five Forces Analysis may show that the degree of competition could get intense. However, with strategies used by players for lowering rivalry in the form of releasing motion pictures on dates which can minimize competition from films in other genres, the general market competition is kept under check.
Bargaining power of Buyers:
Since they have low switching costs when it comes to spending on sources of entertainment, purchasers in the industry delight in significant power particularly. The purchasers do not enjoy a high bargaining power when it comes to working out costs for tickets, the truth that the decision concerning the actual costs remains in their hands enables them a high bargaining power.
Bargaining power of Suppliers:
If we take a look at the bargaining power of the supplier, movie production companies do not take pleasure in a high bargaining power specifically because of their dependence on famous directors, manufacturers and actors. While the latter do have a high bargaining power, movie production and distribution business do not delight in the exact same degree of control in the industry.
It must be kept in mind that Enron Collapse Porters Five Forces Analysis does not rely on star actors in its movie making business which shows that the high bargaining power that is delighted in by stars in the industry does not have a significant influence on Enron Collapse Porters Five Forces Analysis. (See appendix 3 for summary )
Degree of Rivalry : Medium
Combined market share of 75% delighted in by Loctite, Eastman and Permabond
Customer is not brand conscious
Market is not saturated but has numerous market segments
Threat of sales cannibalization exists
Bargaining Power of the Buyer: Low
Buyer has low understanding about the product
Final customer depends on distributors
72% of sales are made straight by manufacturers and distributors
Bargaining Power of Supplier: Low
Provider does not have much influence over the buyer
Buyer does not show brand acknowledgment
Low price level of sensitivity
Threat of new entrants: Low/High
- Ease of entry in immediate adhesive market
- Risk in devices dispensing industry is low
Threat of Substitutes: Low
- Threat in immediate adhesive market is low
Dispenser market has replacements like Glumetic tip applicators, inbuilt applicators, pencil applicators and sophisticated consoles