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Read the case and , and answer the question. don't find any resource from Internet or other book - Assignment Example

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The strength of this competitive force depends on whether the buyers have adequate bargaining leverage to get favorable terms from the suppliers (price concessions). In addition, the price…
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Read the case and assignment, and answer the question. dont find any resource from Internet or other book
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Download file to see previous pages The force is only significant when certain suppliers within the industry can differentiate their products to improve the quality of the industry’s products. However, the supplier bargaining power can influence the industry since not all suppliers possess all the movies available in the movie rental industry.
Potential new entrants pose a strong competitive force within the movie rental industry. The dynamic nature of markets makes it easy for emerging firms to penetrate the market to fill any identified gaps within the industry. Existing firms do not have any control over the changing markets. New entrants increase the competitive forces within the industry.
Similar firms in the industry compete on the basis of ‘business rivalry’ among themselves. The strength to attract customers among multiple sellers in the industry is the strongest competitive force. Customers are satisfied by the product that satisfy their needs, and maximizes their utility. Movie libraries compete to attract customers with the aim of maximizing revenue. The firm with the largest customer base becomes the most preferred firm among the existing and prospective customers.
There are numerous changes about where and how movie rentals can be sourced. Movie rentals can be obtained from cable, fiber-optic, and satellite television providers. Consumers can connect their television sets to the internet to stream movies from online providers. Consumers are at liberty to obtain movie DVDs by;
The internet has proven to be limitless within the movie rental industry. Advancements in technology have forced Netflix, Hulu Plus, and Amazon Prime Instant Video to resolve to online streaming as opposed to the traditional pay-per-view rentals. The gradual transition from pay-per-view and Video on Demand (VOD) rentals to unlimited internet streaming is a driving force in the movie rental industry.
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