Porters Five Forces:. Threat Of New Entrantspower Of Supplierspower
1261 WordsMar 29, 20176 Pages
Porters Five Forces:
Threat of New Entrants Power of Suppliers Power of Buyers Product Substitutes Intensity of Rivalry
Medium Medium High High High
Threat of New Entrants:
This is Medium as there are several new firms with new and similar products. Some of these products have a verity of operations as well as some that have minimum operations for buyers to choose from. For example, in 2015 there was news of a new eReader named Kobo Glo HD. It was stated that “a display every bit as pixel-packed as Amazon’s stunning Kindle Voyage—at a $70 discount” (Barrett, 2015)
Power of Suppliers:
This is Medium. Even though Amazon sells e-books for different operating systems, the Kindle products that will only access content inside Amazons content.…show more content…
However, some competitors have the advantage of both a brick-n-mortar and cyber presence to which Amazon is only cyber. There are over 150 different types, models and styles of eReaders sold by several different firms competing over the eReader market. (Usercontent, 2017)
Strengths Weaknesses Opportunities Threats
Strong Brand recognition and loyalty Does not have the respect as a tablet that its main competitor the iPad Acquisitioning of smaller eReader companies Highly saturated market. Aggressive competition with large retail firms
Fifth largest share in the tablet market, yet had a massive growth in 1 year. Kindle Fire provides only an online retailer. Limited brick and mortar presence Establish brick and mortar presence Competing with products with similar price points and superior technology
Extensive product mix The interface design is considered subpar to its competitors The 18-24-year-old market in severely under tapped as well as semi-urban/rural markets Cybercrime.
Leading e-retailer in the United States Easily imitable business model Improve measures to diminish counterfeit sales Technologically advanced and multipurpose- Apple iPad.
Amazon.com and the name Kindle are one of the strongest e-commerce brand. This is because of in part of how Bezos was fortuitist to start the online retail store early, within four years after the first web browser was created. (Jeff Bezos , 2008) Amazon has a very extensive