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Competitive Analysis in B2B Broadband Industry
Competitive analysis of B2B broadband industry
Porter's five forces model is a framework upon which an industry can be analyzed. It also helps to create business strategy by deriving the attractiveness of a market. The model uses five components, referred to as forces, which are threat of substitute products, industry rivalry, threat of new entrants, bargaining power of suppliers, and bargaining power of customers (Porter, 1980). The first three are forces from horizontal competition from competitors while the last two are forces from vertical competition from customers and suppliers.
Threat of new entrants
The B2B broadband industry is one that is growing year on year meaning new companies may be seeing opportunities for growth and gaining market share. Over the last two years, the expansion in the B2B broadband industry has been at about 13%. This high growth is a threat for the entry of new...
Business customers increasingly prefer tailor-made broadband offerings. This means there are opportunities for companies to offer unique packages thus creating a threat for new entrants to gain market share by being willing to budge in order to gain market share. Busby Telecoms, however, has the benefit of being a market player for a longer period than new entrants meaning they understand the industry landscape better and therefore are able to customize their products better thus increase their market share better (Wolfe, 2007).
Threat of substitute products and services
The B2B industry is one that is highly dependent on custom solutions for customers. This means that of the $200 trillion that the industry is worth worldwide, companies will need to establish themselves better through dynamic pricing and unique business models that support reverse aggregation and…
References
PORTER, M.E. 1980. Competitive Strategy, New York, Free Press.
WOLFE, M. 2007. Broadband videoconferencing as a knowledge management tool. Journal of Knowledge Management, 11, 118-138.
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