Generally speaking, by analyzing Porter’s five forces of radio station industry in New Zealand, we could get the conclusion that four of those five forces have negative influences on the industry, namely the intensity of rivalry, the threat of substitutes, the bargaining power of buyers, and the bargaining power of suppliers. Only the threat of new entrants has positive influence. Fortunately, ICTs are broadly used in converting the negatives to positives among the radio station industry. And it actually does very well. The below facts are the analysis of Porter’s five forces and ICTs being implicated in radio station industry.
• Threat of New Entrants
Initially, we would like to comment the unique constructive factor of Porter’s five…show more content… However, the industry confronts with the hugely powerful threats from many different kinds of communication media in New Zealand, including television, radio, newspapers , magazines, films and websites, and etc. Adequate substitutes are available which increase competition in the radio industry. Moreover, Each method has its own pros and cons. For example, Sky TV impresses the audience both with sound and images. Unfortunately, it is unavailable for advertising because audiences pay for the programs. Then what can we do to make the radio outstanding?
To be honest, radio cannot take place of any of these substitutes. Nevertheless, radio could make use of them by ICTs. Hence, multiple listening platforms such as the internet and digital TV are established. And these new platforms have assisted radio to escalating opportunities for brands to get in touch with listeners in progressively more innovative ways. Furthermore, radio is well positioned to work alongside the emerging platforms with its ability to co-exist and complement developing technologies. These new platforms benefit the traditional on-air broadcast by adding increased touch-points.
According to the enormous benefits that the multiple listening platforms bring about, the situation of radio turns out to be constructive.
• The Bargaining Power of Buyers
As a single solution of advertising, radio does not prior to others, such as TV and internet.