Week 5

Q.10

Your assignment in week 5 is an e-business strategy assignment. Consider the strategic impact on your website in each of these ‘five force’ areas and write a little bit on each. So for the company you have chosen, please write a short blog posting (around 250-500 words max in total for all five areas) looking at each of these five areas. For example if you have chosen www.dabs.com, then write 50-100 words on the ‘threat of substitutes’, then 50-100 words on ‘bargaining power of customers’, and so on.

Porter’s five forces analysis helps the marketer to contrast a competitive environment.

The threat of substitute products

Property pal is a company that advertises house for customer and other companies and Internet technology enables faster introduction of products and services so another company could come along and make their buisness website easier to use and cheaper services. Increased services introduced by other companies may reduce customers and profit.

The threat of entry of new competitors

If new laws were to be brought out by the goverment this could allow more competitors into the market and take away customers. The internet is a easy way of creating a buisness than on the high street so my company Property Pal could have competition growing every day so services they provide for example the price of allowing customers to recieve texts to be lowered so profits are lowered.

The intensity of competitive rivalry

The competitive rivalry for property pal will increase because of the internet and allow buisnesess to  have the same services so prices in the buisnesess will drop and so will profits. The property market at the minute is on a downfall and prices of houses are going down and so people cant sell their houses. This is all to do with the econmy and if houses are not selling well then this s going to have an effect on property pal.

The bargining power of customers

Customers and companies looking to put their houses on property pal can look for cheaper and better services because of the internet and so prices are going to be lowered as the market is competitive and also the econmy is poor at the minute so customers are going to look for the cheaper option to save money.

The bargining power of suppliers

The increasing number of companies selling property allows companies to view property pal’s website and viewing how good the site works and the layout of the site against its competitors. This allows property pal to have an advantage and so more companies and customers want to advertise on their website.