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FORCES DRIVING INDUSTRY COMPETITION

Yahoo: Business on Internet.


Johari Abdul Rahman Suriana Ramli

Forces Driving Industry Competition


Potential entrants
Threat of new entrants Bargaining power of suppliers

Industry competitors Rivalry Among Existing Firms

Bargaining power of buyers

Suppliers

Buyers

Threat of substitute products or services

Substitutes

Yahoos Properties/Services
Navigation
Search -and -browse

Community Property
Address book, e-mail Customerize to suit the users need.

Personalisation

Electronic commerce
shopping travel,real estate , property

International property
To suit the local requirement.i

Basis of competition
Competing for the reach (exhibit 14) Yahoo- 41% from home and 50% from office Registered users- 35 millions Products and services. Navigation- Content and information. Community -connect and communicate. Electronic commerce. Ease for personification Revenue Advertisement E-commerce -

Potential entrance
Minimum barriers
Any company can set up portal

Difficult to build up barriers to entry. New entrant do not pose a threat to Yahoo as:
It take time to establish the name in the market. The existing players had met the needs of the customers.

Buyers

Buyers are powerful if:


the buyers are concentrated/ large volume. component of the buyers product. earns low profit, creating incentive to lower buying cost.

Two distinct type of (interdependant) buyers


paying and non-paying.

The buyers are not a critical threat to Yahoo:


The buyers were large in number, and increasing. First quarter on 1997, the number of advertisers were 700 and the figure increased to 2,225 in fourth quarter on 1998.

Suppliers
Divided into: 1.contents providers. 2.Advertisement media 3. Labor 4.Technology High threat in the technology Excite access to deliver through television channels. TV and telephone that access internet. Medium Threat for Labor and content providers
Labor can be developed and available subject to suitable pay, concept of global work-force Media- the threat may increase if the number of players increase, because the number of supplier remain about constant.

Industry competition
The most intense of all the competitive forces. It is shaped by the changes in the competitors, AOL/Netscape, @Home and Excite. Products- almost generic, Excite, known for ease of personification- attacked the same old Yahoo.

Continue...
AOL/Netscape - the partnership complement benefit each other. Yahoo should be concerned with the big players, excite/@home, Aol/Netscape and MSN.
They have the resources and staying power.

Conclusion
High intensity in the industry competition. Medium threat of the the suppliers:
technology, contents, labor

Minimum threat in the new entrance, and buyers. Low threat on the substitute