Porters Five Forces Facebook THREAT OF NEW ENTRANTS

Porter’s Five Forces – Facebook THREAT OF NEW ENTRANTS Since Facebook has successfully established itself as the ideal social networking site with more than 1 billion users, it may be difficult for new social networking sites to threaten Facebook’s market position. The threat is medium. SUPPLIER POWER Facebook suppliers consists of hosting services providers and other third party services providers. Since there are many such suppliers, the supplier power is considered to be low. BUYER POWER RIVALRY There are many alternatives such as Twitter, Weibo, My. Space, …, etc. This is considered to be high. There are large number of users, users once established a social network with Facebook, they are unlikely to switch. So buyer power is considered to be low. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES. There are other products such as Email but is not as convenient as Facebook as a social networking tool. Possible future innovative tool? 1

Porter’s Five Forces – i. Phone THREAT OF NEW ENTRANTS 1. There are powerful companies such as Samsung whose market share is comparable or even better than Apple. 2. There are many other Android based influential competitors. SUPPLIER POWER i. Phone uses components from many other suppliers. For example, it uses microprocessor chip is from Samsung. Other manufacturers provide chips that are central to the camera, display, and motion sensor. In short, Apple needs to keep good working partnership with suppliers. BUYER POWER RIVALRY Many Competitive rivals in the smartphone market i. Phone is considered to be a luxury device which is expensive compare to many other smartphones. There are reports about customer dissatisfaction about i. Phone price. However, i. Phone is a well established brand with a group of loyal fans. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES. is possible to have other It innovative product that can replace smartphones. 2