Porter’s five forces model

boAt company in USA

CHETAN LOHARE-22020241028

DISHANK GUPTA-22020241039

HAREN CHRUNGOO-22020241040

NISHA KADAM- 22020241050

NIRANJAN MUDALGIKAR-22020241061

PARTH SHAH-22020241071

RIFAT FARAZ-22020241077
 Porter’s five forces model

The competitive forces that define a business's strengths and weaknesses are
identified by Porter's five forces. The threat of New Entrants, Threats of
Substitutes, and Industry Rivalry are three forces from "Horizontal
Competition," whereas Threat of Substitutes and Industry Rivalry are two forces
from "Vertical Competition.” "Buyer bargaining power" and "Seller bargaining
power."

1. Threat of New Entrants – High

a. The sound electronics business is seeing a large influx of new players

due to social networks and digital marketing growth. Ex: Zebronics,
Mivi, etc.

b. The growth of smart devices and music streaming apps (from the
demand side) as well as cheap manufacturing costs (from the supply
side) are major drivers for new entrants.

2. Threat of Substitutes – Low

With various options available like Bose Quiet Comfort Earbuds, Apple
Airpods Pro 2nd Gen, Samsung Galaxy Buds Pro 2, Google Pixel Buds
Pro there is threat of boAt product being substituted.
 BoAt is interested in a wide range of consumer gadgets, including home
theatre systems and wireless headphones.

3. Industry Rivalry – High

 a. Personalized music streaming convenience and the availability of
affordable smartphones have led to an increase in music consumption
and, as a result, fierce competition among current players.

b. The target market is highly segmented (based on income and age

groups), and many established firms are attempting to serve a variety of
segments with their broad product lines.

4. Bargaining power of Buyers – High

a. A large portion of boAt sales are conducted through e-commerce

behemoths like Amazon and Flipkart.
As a result, Amazon and Flipkart have significant negotiating power over
margins.

b. BoAt is susceptible to a high churn rate because of its relatively young

brand and low brand loyalty.

5. Bargaining power of Suppliers – Low

a. Due to the abundance of vendors, the market is extremely competitive.
China, ex.
b. A high component commonality

Bargaining Power
This speaks to the influence that a company's strategy group, boAt, has
over its clients and vendors. Although boAt lifestyle is a company that
can achieve significant economies of scope—that is, their speakers,
microphones, and wires can be used across the product portfolio—the
majority of players in the Indian speakers market, which generates $1.7
billion in annual revenue, are in direct competition with one another.
Some have even resorted to importing parts from nations like China. Due
to the rivalry, suppliers who serve various strategic groups for audio
devices and mobile phone makers who are expanding their accessory
offerings now have more negotiating power. Customers are showing a
similar tendency, with options available across a range of price points and
product quality. Customers have an advantage in the negotiation process
since they are more susceptible to being persuaded by numerous other
brands' incentives.

Vulnerability of the firm’s strategic group to substitutes

The audio accessories industry is crowded with participants because of

the large number of established (domestic and international) firms,
mobile phone manufacturers' expansion into audio accessories, and the
mushrooming of start-ups. This suggests that boAt faces a significant risk
of direct competition across all product categories (high or low
involvement).

Exposure of rivalry
is the level of exposure to competitors that a company or strategic group
has. BoAt and many other competitors do not have favourable bargaining
power in this issue. This puts boAt in a position where another company
with much more financial resources may make it look bad. The advantage
of this is that many players occasionally open up new markets and expose
existing ones, opening up new chances; but, in this situation, boAt will be
constantly under pressure from other brands.