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Competitors and suppliers: Video Industry analysis

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Question 1: Competitors and suppliers

Online streaming industries are Hulu, YouTube, Netflix, Starz, Prime Video, Showtime, and HBO Now. On the other hand, the suppliers are Fox, Universal, and Disney.

Question 2: Competitors in a different industry

Competitors in different industries are hiring movie theatres to deliver content on big screens, including Cinemark, Cineplex, Celebrity, and AMC.

Question 3: Key Element

The key element industry analysis is trying to assess how profitable an average competitor is likely to offer differentiated products for consistently high prices.

Question 4: Economic Rivalry

 Economic force rivalry may capture reduced prices for buyers companies undercut each other in price wars.

Question 4a: High rivalry

  • Highly fragmented with many products
  • When there is a high level of product standardization
  • When there is the low industry growth rate
  • When there is production overcapacity
  • Where there is high fixed costs

 

 

Question 4b: Understand the difference

Wendy’s and McDonald’s fast foods compete based on price wars while Five Guys and Chipotle compete with differentiated products.

 

Question 5: Economic force threats of entrants

Economic threat accompanied by new competitors results in lowered prices due to competition; otherwise, they find it easy to enter. Profit margins are still low, and there is no name to keep.

Question 6: Threats to entrance

Industries have higher threats to the entrance

  • When they have low scale economy,
  • the low capital cost of entry,
  • when brand awareness is less important,
  • when they’re a few regulations, low-cost entry, 

Question 7: Economic force buyer power

The buyer power captures the extent to which buyers can negotiate for more values and lower prices.

Question 8: Buyers Power

Buyers have higher power when there are fewer buyers, when they have low switching cost, and when they highly price sensitive.

 

Question 9: Economic force supplier power

Supplier power captures the extent to which suppliers can negotiate for higher prices within the industry.

Question 10: Suppliers powers

Suppliers tend to have high powers when there are few suppliers, and when it is costly to switch suppliers.

Question 11: Threat of substitute

The threat of the substitutes captures how other companies do the same job but in different ways.

Question 12: The higher threat of substitute

The threat of substitute foes higher

  • When the customer is aware of the actual products
  • When they are highly available
  • when they are low priced
  •  when the performance is high
  • when the switching cost is higher.

Question 13: Complements

Complements capture the extent to which some other products and services increase the demand for the job customers hire your industry to do.

Question 14: When do complements enhance industry profits?

Complements enhance profits when customers perceive higher value when consuming your products, when complements are available at attractive prices, and when the complements’ performance is high.

 

Question 15: Complements and substitutes impact of profits

Complements and substitutes affect how many buyers come to this industry instead of any other industry meeting their needs. Substitutes peel away customers taking customers to other industries while complements attract more customers to our industry.

 

Question 16: New entrant’s impact on profits

New companies will fight for the same customers in the market, forcing firms to have reduced inflows. Therefore, companies have to fight for market share by dropping prices.

 

 

 

 

 

 

 

References

Kryscynski, D. (2021). Industry Analysis. YouTube.  https://www.youtube.com/watch?v=UUKAX0E4ckM

 

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