Question

Do a basic industry analysis of your choice, use Porters 5 forces model for this industry analysis, make sure and include some industry metrics and analysis.

Answer 1

Answer:-

This theory is created by Proff. Michael Porter to analyze the industry working , weakness, strength and comptetion analysis.

This theory is based on 5 pillars commonly knowns as 5 forces model. let us explain them one by one

1.COMPETITIVE RIVALRY:-It includes looking at your competitors, what are their strengths and weakness, what they produce and sell, who are their buyer and supplier .

2.SUPPLIER POWER:-It means how the supply will be made if prices increases. how many potential supplier do we have in case of any emergency. Where will the supply come from in case of exigencies

3.BUYER POWER:-It includes analysis of market demand and identifying the taste and preference of customer, what they need, in what quantity they need, what price they can pay

4.THREAT OF SUBSTITUTION:-In this point analysis is being done on the availabality of any substitute of our product. how much likelihood is there that your customers can find a new alternative of your product.

5.THREAT OF NEW ENTRANTS:- New Entrants can enter and ruin the market by penetration at lower price, this risk is to be analysed by identifying and creating the barrier for new entrants.

Industry analysis on above model

Whtsapp messenger was having a monopoly in social media applications, it was the best social media application used for sending text and video messages. later slowly there came other apps too like snapchat, hike, facebook messenger etc. But whatsapp continously updated itself and made improvements every time by analyzing market threats and substitute present.