Question

using the 5 forces model analyze any service. Critically examine the impact of COVID 19 on the competitive advantage of service organization using a suitable example.

Answer 1

The service I would like to analyse would be the service of Netflix during this time of Covid 19. Porter's 5 forces of model shows the whether the environment is suitable for the business or not identifying various types of forces influenceing the performance. Thus, the 5 forces influencing the service provided by Netflix at this time of Covid 19 would be:

1. Existing Competition: As we all know due to this covid 19 situation, the whole world has been down for the quarantine and lockdown. Everyone is at thier homes, social distancing and not meeting anyone. At this time, the Services of Netflix are reaching their heights. But, netflix isn't the only option in the market for online streaming. Amazon Prime, Hotstar, Voot etc are also available for the media to increase the level of competitionat this times.

2. Threat of entrants: As mentioned before, due to high peak competition and larger profits, many new entrants would also enter the service market for online streaming soon to compete with Netflix and merge with the contribution of the profit. Thus, a threat of new competition also prevails.

3. Substitutes: Apart from the online streaming services, there have been similiar kind of substitutes which are used to attract the customers and make them theirs. Many examples at this quarantine time like Zoom app for video calling or Youtube have been providing various media options for the people to decrease their amount of interest for the Netflix thus being a threat.

4. Purchasing Power: Now, apart from this as many and many people around the globe have started using Netflix more and more especially at this time of Quarantine, we can see that the purchasing power being so significantly huge are decreasing the prices for them to avail. As more people wanting to use it and to promote the non socialising activities, Netflix is bound to provide its services at a cheaper price to promote stay at home activities to reduce the impact of Corona.

5. Supplier Power: On the other side, as purchasing power is high the supplying power is also being dominant at this side. Now, due to this corona virus impact, Netflix is supplying a mild or low video quality and not the HD quality because of the fact that so many people are now using it, the organisation is not able to provide the HD quality for so many people at the same time. Thus, the supplier power and buyer power both have tremendous effect on the service of Netflix.