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.
 Bike and Wheel Charts for PowerPoint
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 Slide Title
Product A Product B
• Feature 1 • Feature 1
• Feature 2 • Feature 2
• Feature 3 • Feature 3