Competitive Business Force Model

Question: Discuss about the Competitive Business Force Model. Answer: Porters Competitive Force Model The industry is given industry plans to the Australian customers. The porters competitive force model is used to analyse the aspects of the competitive structure and environment of the industry. Bargaining power of suppliers: It is low. The suppliers of the company are computing hardware and software providers only. It threatens the industry by raising price and reduces the quality of services. Bargaining power of customers: It is medium. The customers are not so much pressurizing the company to provide high quality internet plans and quality services. Threat of new entrants: It is high. The company decides to make suggestions on internet plans based on needs of customers, as it is easy for new company to enter into the industry. Threat of substitutions: It is high. The buyers are looking for alternative products in the market. If they find any alternative product, then they will switch to them. Rivalry: It is medium. Until there are no such rivalries of the industry those are giving similar internet plans as the company.