Assignment - Case Study Example

Summary

The bargaining power of the buyers is moderate, considering the fact that it can neither be rated as low or high, since the buyers have access to different sources of movie rentals, and on the event that Movie Rental Industry sets its prices relatively high, the buyers can…

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Subject: Management
Type: Case Study
Level: Ph.D.
Pages: 4 (1000 words)
Downloads: 1
Author: tmohr

Extract of sample "Assignment"

Download file to see previous pages Therefore, the buyers have a reasonable influence on the prices that Movie Rental Industry sets for its rental movies, though not wholesomely.
The bargaining power of suppliers in the rental movie industry is high, since it is the content providers, the networking companies and the distribution studios that regulate the prices that movie rental industry pays for the supply of the rental movies (Patton, 142). Therefore, considering the fact that the movie DVD format are continuously getting out of fashion while the digital hiring of movies is becoming the common trend in the modern world, movie rental industry is completely vulnerable to the distribution studios terms and conditions, since the studios hold the copyright privileges and may rent or withdraw the rights at will (Patton, 42). This leaves movie rental industry without much say regarding what price to pay for whatever content is offered.
Internal competitive rivalry for movie rental industry is low, because the niche market operated by movie rental industry has the theater as the other main competitor, meaning that the internal competitive rivalry is low (Patton, 140). However, outside of the niche market, the competitive forces might be high, owing to the fact that there are many other operators in the wider entertainment industry, especially the theater locations for live performances. Thus, while the movie rental industry is a growing industry where competition is set to be high in the coming days, the niche market of digital rental movies is currently not very crowded, making the internal niche market competition low.
While the entry into the rental movie market is not very restricted, the cost of attaining the digital distribution license is high, thus making it relatively difficult for many similar entities offering the same product to enter and thus offer a low-medium threat to the movie rental industry services (Patton, 143). Additionally, the digital distribution of ...Download file to see next pagesRead More

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