Question

Our idea is a platform that includes services to online shoppers who do not have visa we pay instead of them when they transfer money to us by transferring money through local bank also shoppers they have a problem in some websites that do not ship outside the United States we will provide addresses in America receive shipments and then ship them here.

writhe the five competitive forces model for this idea :

Answer 1

Using porters five competitive forces model for this idea

Competitive rivalry- Established firms such as Mastercard, Visa, American express are already present in the market. Many Digital payment firms have entered the market. Hence, the rivalry is fierce which means margins will take a hit.

Supplier Power- Many of the partners of gateway firms have bargaining powers since they can simply provide the services to others unless the platform has enough transactions and reach.

Buyers power- Buyer has the option to choose from many payment platforms. however since this platform allows payment to non-visa or cardholders, many people will use it. Cardholders are less compared to those without the card., Hence buyer power will be less in this case.

Threat of new entry- Entry barriers are less and due to huge market,payment industry is set to grow with many players.

Threat of substitues- Substitutes are already present and new ideas will be easily copied by others.