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.
- 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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