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Porter S 5 Forces On IT Industry
Porter S 5 Forces On IT Industry
Evolution of IT Industry. Porters 5 Forces (a)- Concept Introduction. (b)- Relevant Search. Conclusion
A field that deals with the major intended and emergent initiatives taken by general managers.
On behalf of owners, involving utilization of resources, to enhance the performance of rms in their external environments.
It entails specifying the organization's mission, vision and objectives, developing policies and plans, and then allocating resources into actual reality.
Porter's five forces is a framework for the industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractive means overall profitability. Unattractive industry Pure Competition available profits for all firms are driven down to zero.
Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.
Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants Two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. Ad hoc basis.
Bing (3.49%)
= Tie UP = (10.17%)
BING Faces a huge short term threat. Long term threat from competitors might reduce High Rivalry within industry.
Negligible substitutes
Static in nature Libraries, Encyclopedias, Magazines, Newspapers, etc Low threat from substitutes
Suppliers are:
Information seekers Content Supplier IT Supplier Equipment Supplier Maintenance Service Supplier
Facilitate revenue generation. No payment, barter of information for information seekers. High bargaining power.
Googles - S.W.O.T
Strength
1. Number one search engine on the net. 2. The speed & simplicity of its search engine is reliable & user friendly. 3. Its acquired You Tube, regarded to be the number-one online video portal users.
Weaknesses
1. Dependent mostly on its search based marketing. 2. The cost for the data-center getting higher & higher.
Opportunities
1. Using higher value content on the net. 2. Simple specialist search, which can be integrated using open-url. 3. It can increase its overall commercial spending online. 4. Its can enhance by having new acquisitions.
Threats
1. It can lose control over the indexing
policy owner. 2. Library services becoming less visible. 3. Users ending up not getting to the institutional subscription. 4. Competition from firms like Yahoo, MSN.