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Pennsylvania State University Competitive LandScape Industry Analysis

Pennsylvania State University Competitive LandScape Industry Analysis

Pennsylvania State University Competitive LandScape Industry Analysis


Porter Five forces:

Threat      of new Entrants (High) – The video conferencing market has grown      significantly as a result of various companies entering the arena, and      with enterprises migrating virtually around the globe, more and more new      entrants are emerging since infrastructure costs are low and technical      talent is easily available.

Threat of      substitutes (High) – There are numerous video conferencing choices      available, and social media businesses have begun to offer video      conferencing and chat services that are viable substitutes. Video      conferencing gives for a strong virtual connection, but different chat      alternatives can also help. Because it is based on client behavior, these      alternatives are springing up on a regular basis, and the threat of      substitutes is considerable.

Bargaining      Power of Suppliers (Medium) – This is managed since there are numerous      dependencies, such as internet providers, and industry providers have low      switching costs when switching from one supplier to another. Suppliers      also get into exclusive arrangements, allowing them to exert moderate      control over the sector.

  1. Bargaining      Power of Buyers (High) – Individual customers, business clients, and other      entities can readily deal with the availability of many free providers and      replacements since switching costs are minimal. Because of the reliance on      internet firms and telecommunications, companies cannot have exclusive      control, therefore buyers have a lot of bargaining leverage.

Rivalry      / Competition (High) – There are up to a hundred service providers, and      clients have cheap switching costs, thus competition is fierce as      companies compete for market share. Pricing and other integration services      are offered in a variety of ways by various service providers, and      technology is always improving and evolving, resulting in more competition      among competitors. We can also notice that many companies’ marketing      strategies are geared toward luring customers with lucrative offerings. As      a result, customer competition is fierce.

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