The main purpose of the Porter’s five-force model is to find a position in an industry where a company or business model can defend itself against competitive forces or can influence them in its favor. It also helps to analyze the present SWOT analysis of the company and how company can improve in its operations. A business strategist can categorize each competitive force by ranking it as high, medium or low. With a clear analysis, a business model can take advantage of the strengths and improve upon the tentative weaknesses before the introduction of organization into industry or adjust in accordance to the convenient business environment. Let us discuss the five salient features of the model in general. Supplier groups and their Power
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The capability of all competitors is very important to gauze. Many competitors which offer similar or undifferentiated products and services definitely reduce the market barriers for entry. So the important factors are:
• Degree of transparency within the industry
• Level of innovation
• Competitive advantage of each company providing similar service
Facebook is highly competitive. The most recent example was when Google launched the rival social network Google+ that could be accessed by all Gmail users through the web as well as Android devices. However, Google+ has not been greatly successful in replacing Facebook. Therefore, we can identify the competitive rivalry that Facebook faces are HIGH.
Conclusion
Analyzing the operations of Facebook, growth rate of Facebook and financial growth of Facebook we can infer that Facebook has become a leading social networking player in the industry, creating bigger barriers for any other future entrant into the industry.
Facebook has been innovative in its technology. Started as a personal venture for its founder, Mark Zuckerberg too it to another dimension of business and made it a huge player at international social networking …show more content…
Financial growth of Facebook has given the organization an opportunity to work in a financially secure environment and develop its competencies to next level. Having annual turnovers in billion dollars, with a small workforce of around 7500+ employees, gives Facebook open opportunity to use its assets in future mergers and acquisitions as we have seen in recent past when Facebook acquired mobile chat application of WhatsApp which gave Facebook direct access to each and every mobile device available on Android or iOS technology.
But before further mergers and acquisitions, Facebook has to understand that its core competency is an interface of social networking under which it has excelled to newer heights. To enhance its work capabilities to mobile applications and other portals, Facebook has to develop further competencies in those particular
The capability of all competitors is very important to gauze. Many competitors which offer similar or undifferentiated products and services definitely reduce the market barriers for entry. So the important factors are:
• Degree of transparency within the industry
• Level of innovation
• Competitive advantage of each company providing similar service
Facebook is highly competitive. The most recent example was when Google launched the rival social network Google+ that could be accessed by all Gmail users through the web as well as Android devices. However, Google+ has not been greatly successful in replacing Facebook. Therefore, we can identify the competitive rivalry that Facebook faces are HIGH.
Conclusion
Analyzing the operations of Facebook, growth rate of Facebook and financial growth of Facebook we can infer that Facebook has become a leading social networking player in the industry, creating bigger barriers for any other future entrant into the industry.
Facebook has been innovative in its technology. Started as a personal venture for its founder, Mark Zuckerberg too it to another dimension of business and made it a huge player at international social networking …show more content…
Financial growth of Facebook has given the organization an opportunity to work in a financially secure environment and develop its competencies to next level. Having annual turnovers in billion dollars, with a small workforce of around 7500+ employees, gives Facebook open opportunity to use its assets in future mergers and acquisitions as we have seen in recent past when Facebook acquired mobile chat application of WhatsApp which gave Facebook direct access to each and every mobile device available on Android or iOS technology.
But before further mergers and acquisitions, Facebook has to understand that its core competency is an interface of social networking under which it has excelled to newer heights. To enhance its work capabilities to mobile applications and other portals, Facebook has to develop further competencies in those particular