Analysis of Audible.com Using Porter’s Five Forces Essay
1503 Words7 Pages
Audible.com is the leading online audio entertainment and information service. It sells audio content like audio books, lectures, print publications, audio editions, performances, speeches, study material, as well as other audio. The firm has more than 144,000 hours of audio content from at least 530 content partners with more than 40,000 titles. All the content is available for computer playback, burning to audio CD and listening using portable music device. The firm uses its Audible manager software in downloading, scheduling, managing and playing audio selections. The manager software also allows customers to listen and download spoken content and transfer to Audible Ready players. The firm is the exclusive provider of digital content.…show more content… Only few consumers switch because of issues with the firm. Even though online shopping customers hold all the power, Audible.com’s low prices attract people and sustain them. This makes the firm to have medium level power (Williams 40).
In regard to competitive rivalry, Audible.com is among the first firms to enter the e-commerce market. Consequently, it has established itself as an aggressive and a large competitor. The firm’s innovation, which can be attributed to Amazon, has solidified. It is not going to allow competitors to come and take some parts of the market. As a result, Audible.com has a low competitive rivalry. Competing with companies already successful is hard, and some companies cannot even keep up (Williams 40).
There is a low threat of substitution. Audible.com has diverse audio products. This implies that other firms that offer such audio products cannot keep up. In addition, the threat of new entry is low. The internet offers an easy means for anybody to create a website. However, becoming successful when it comes to selling affordable online audio content associated with outside companies can become difficult. Audible.com is established in offering online audio content. In addition, the firm has an attractive market. Breaking into this established market is a very difficult thing for any firm to accomplish (Williams 41).
1. Customer loyalty that is