Shared

Shared bicycle
bicycle industry
industry in
in China
China Team members
-Nabila Sedki
Porter
Porter Five
Five Forces
Forces Analysis
Analysis -Meryem
-Nico
-朱子
 Introduction
• Bike sharing model has become a
popular industry
• the world’s first station-less bike
sharing system in China.
• the bike sharing companies were
able to get over $300 million
investment since the start of 2017
• the bike sharing industry has severe
uncertainty and risk
1-Threat of potential market entrants

• This simple business model can be easily

imitated by other competitors

• Chinese government hasn’t set any

regulations, the entry barrier is extremely
low

• there are at least more than 30 different

bike sharing companies existing
today in China

• upcoming rivals to jump over the initial

iterations, using more mature or more
advanced technologies to compete with
Mobike
2-Buyer bargaining power

There are some factors that increase the bargaining power of

buyers:

 A more concentrated customer base increases their bargaining power

against Mobike A Smart Bike-Sharing Service Platform
 Buyer power will also be high if there are few in number whereas a
number of sellers (business organisations) are too many.
 Low switching costs (economic and psychological) also increase the
buyers’ bargaining power.
 In case of corporate customers, their ability to do backward
integration strengthen their position in the market. Backward
integration shows the buyers' ability to produce the products
themselves instead of purchasing them from Mobike A Smart Bike-
Sharing Service Platform
 Consumers’ price sensitivity, high market knowledge and purchasing
standardised products in large volumes also increase the buyers'
bargaining power.
3-Suppliers bargaining power:
Suppliers bargaining power rises for MoBike A smart Bike-Sharing Service Platform if:
-Suppliers have clustered in one region, and their concentration is greater than that of their buyers.
-This force is especially powerful when the cost of switching from one supplier to another is prohibitively
high for buyers (for example, due to contractual relationships).
-When there are few suppliers and high demand for the commodity they sell, the suppliers’ position
against competitors is improved. Mopeds A Platform for Smart Bike-Sharing Services
Suppliers bargaining power goes low for MoBike A smart Bike-Sharing Service Platform if:
-There is no concentration of suppliers.
-The cost of switching is minimal.
-Differentiation is lacking in the product.
-There are alternative goods available.
- MoBike is a cutting-edge bike-sharing operation. Network is price sensitive and has a strong
understanding of the market.
-Suppliers do not pose a hazard to forward integration.
4:threat of substitutes
Electrocar sharing and car sharing are the biggest threat of substitutes
nowadays,especially in the first-tier city,such as Beijing and Shanghai
.here are some reasons:
 The emergence of electrocar sharing and car sharing is much later than
bike-sharing,which can give consumers more feeling of freshness
 electrocar sharing and car sharing can give consumers a more relaxed
travel experience
 electrocar sharing and car sharing can give consumers a better long
distance travel experience
 In some big city, it’s hard to buy cars. Car sharing is a good choice for
people who don’t want to spend time and money in car license and car
maintenance.
 electrocars and cars are safer than bikes.
 electrocar sharing and car sharing can adapt to more consumption
scenarios,for example,going out with family and carring things
Rivalry among other competitors
• the competition within Shared bikes industry becomes extremely
intensive due to the low entry barriers

• Mobike benefits from their fast business development in the urban

areas and rapid iterations in socio-technological innovations

• OFO, on the other hand, is more affordable, and offers

better riding experience to the users who preferred more comfortableness during riding
process.
Both companies are competing for the same customer groups and geographical
locations.

• The insignificant differentiation strategies

would require Mobike or OFO to further secure and protect their
technological innovations in terms of patent applications.
 Conclusion
At present, this industry has formed the

two major enterprises, namely OFO and Mobike, along with other small enterprises

competing for the market share. Although the bike sharing industry is booming and

it has become a hot spot in capital investment, its profit growth and future

development areuncertain. With its high threat of potential market entrants, high

buyer bargaining power, and fierce competition, companies are not able to make

profits by continually competing with each other. Although the bicycle sharing

companies are facing a lot of uncertainty in the development process, it is still a

giant market and contains plenty of demands

• Thank you for lis