Strategic opportunities and threats in the film industry using Porter Five Forces Model

This article discusses the strategic opportunities and threats in the film industry using Porter Five Forces Model. It analyzes the five major forces identified by M. Porter in 1979 to understand how they affect the industry structure and level of competition. The article also provides case studies on Bowlans film industry and American Well, and discusses the importance of strategic partners in e-commerce.

Running head: Strategic opportunities and threats in the film industry using porter five forces
model.
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Poster five forces model is an analysis tool that uses five industry forces to determine the
intensity of competition in an industry and the level of its profitability. These five forces were
created by M. Porter in 1979 to understand how five key competitive forces are affecting an
industry. The five major forces identified are: threats of entry, bargaining power of supplies,
industry rivalry, and bargaining power of buyers and the threats of substitutes. These forces
determine an industry structure and the level of competition in that particular industry. The
stronger competitive forces in the industry are the less profitable the industry becomes. An
industry with low barriers to enter having few buyers and supplies but many substitutes’ products
and competitors will become very competitive and thus, not so attractive due to its low
profitability.
According to case study carried out in a film industry, that is the Bowlans film industry it is
evident that that the five porter model has greatly impacted in the industry acquiring best
strategic opportunities in the film industry as well as on the other hand it has posted threats to the
film industry tremendously.
To begin with the best strategic opportunities that have been offered by the porter five forces of
model, the threats of new entrants is a key force that has enabled the film industry to determine

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how easy their customers are able to enter into the industry. This occurs when the customers
related to the film industry realize how profitable the film company is and are able to directly
take into their investments in the company. And since the company is profitable, and there are a
few barriers to enter, the customers thus find easy time to invest in the Bowlans film company
hence increasing the company’s profit. Moreover, the company creates higher barriers to become
a member thus limits new entrants. The threats of new entrants as established in the case study in
Bowlans film industry are high when the following occurs: when low amount of capital is
required to enter a market, the existing company can do little to retaliate, existing film companies
do not posses patents, trademarks or do not have a well established brand reputation, when there
is no government regulation, low customer loyalty, when the products are nearly identical and
when the economies of scale can easily be achieved.
On bargaining power of supplies the Bowlans film company allows their suppliers of the film
equipment to sell their products at higher prices. This brings in a lot of income to the company
according to the case study. The suppliers have a high bargaining power when: there are few
supplies but many buyers, few substitute film products exists, when the supplies hold scarce
recourses and when the cost of switching the company’s products is especially high.
In the bargaining power of buyers according to the case study buyers have the powers to demand
lower prices or higher film product quality from the film industry products. Lower prices mean
lower revenues while higher quality film products usually raise production cost. These scenarios
lead to either higher or lower prices for the company. The buyers always tend to exert strong
bargaining power when: buying in large quantities of the film products or control many access
points to the final customer, when only few buyers exist, switching costs to other suppliers is

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low, the customers threaten to backward integrate, when they are many substitutes and mostly
when the buyers are price sensitive .
According to the case study, the threat of substitutes is a major point to lay emphasis on. This
affected Bowlans Company in several appendages especially when the force threatens when the
company’s buyers found substitute products from a film industry in the Middle East. The
company sold the film products at a much cheaper price to as compared to Bowlans Company.
This always led to the decline o the company until when the company reenergized and started
looking for more and more customers in various countries but to no significance. This forced
Bowlans Company to register another company that now sold at much lower price than the
competing company. As result, the customers due to the lower prices ran for the newer company
not knowing the trick that was laid down. This indicates that sometimes business may be so
challenging.
Rivalry among competitors is one of the most prudent elements in the porter five forces model
according to the case study on Bowlans Film Company. It is a determinant on how competitive
and profitable the film company is. In the competitive industry the film firm has to compete
aggressively for a market share, which results in low profits. The rivalry among competitors as
evident in the study becomes intense when: there are many competitors, exit barriers are high,
the industry of growth is slow or negative, and products are not differentiated and can easily be
substituted and low customer loyalty.
Complements on the other hand on the other hand has increased the demand of the company’s
primary products that is the film products thus has increased the company’s potential profits
hence increased expansion of the company’s wings and greater wages to its workers.

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The industry has greatly changed in terms of the five forces of Porter. This happens when the
managers are able to gather the information on the industry and to check it against factors such
as the amount of capital required to purchase a given film product? And to what profit should it
be sold? The managers have as well looked into the factors such as product differentiation where
the products should be made totally or partially different from another industry’s products thus
limiting unhealthy competitions. The forces has well have increased the company’s access to
suppliers and distributors through the threat of new entry. Alternatively in the supplier power the
industry has been able to determine the number of suppliers of the film products thus choosing
the best commodities from the best suppliers, the cost of switching to alternative products has
also been enhanced in the company as they only take part in the sale of fast selling products of
the company and always ensuring there is enough stock for the same.
In the American Well –The doctor will E see you in its relationship to Porter five forces model it
is evident that case study focuses on marketing the company’s new innovative online care
technology which will allow the physicians to deliver care to patients online in the real time. In
regards to industry rivalry in various industrial developments in the case study it is evident that
the physicians develop this innovative online care technology to strengthen their markets as they
can offer quality services and are likely to be reached at any time this makes them escape rivalry
with other health care providers thus more profits upheld. Here, emergency healths concerns can
communicate with physicians online receive advice and diagnosis by not necessarily visiting the
physicians’ offices. The American Wells co-founders Ido and Roy believe this platform will
actually reduce the cost of healthcare delivery, create new revenue –earning opportunities for
providers and contribute to more efficient health care delivery systems. Other new initiatives by

Strategic opportunities and threats in the film industry using porter five forces model 5
the physicians is to expand the customers base delivery networks such as hospital and large
clinic chains, clinics and pharmacies
In the case of threats to product substitutes it is clear that that brokering is evident in the study
where the concept of brokering between the excess supplies of products leads to fake products in
various markets. The brokers offer their services at a cheaper price this makes other service
providers with no or little markets for their products and services.
Similarly it shows the challenges inherent in facilitating the adoption that dramatically the
existing practice through development of telemedicine and online reachable physicians this
improves their quality of care and since the costs are reached before services are offered the
bargaining power of the clients is reduced thus their bargaining power of the services offered
stands still this increases the amount of profits made as most clients are unable to bargain out the
set prices by the physicians.
The case also shows how start-ups expand into new target markets thus enlarging the physicians
markets, and once the markets are enlarged more profits are made and further growth of the
sector.
Section B.
Strategic partners in e- commerce and their importance.
There are various e-commerce strategic partners that are able to expand ones business from a
meager company into the world’s most recognized companies. In the above stated case when
advising the US postal service on the best strategic e-commerce partners to link with for

Strategic opportunities and threats in the film industry using porter five forces model 6
efficiency of its service delivery I would propose each of the following partners for smooth
functioning of the Postal service.
ThreatMetrix is one of the e –commerce partners that would work best with the US postal service
as it provides sophisticated user authentication solutions that leverage the collective power of a
Global Trust Intelligence Network to deliver unmatched security and fraud prevention. Protects
access to user accounts and workforce applications, ensures payment security, and prevents
fraudulent account creation. It also offers essential business security and fraud prevention. It
could allow the poster business to take advantage of globally gathered collaborative intelligence
protecting user account access it is located in Netherlands. Another partner is the Symatec of
United Kingdom this offers more value than the SSL alone to protects and grow a business will
enhance the growth of the US Postal Service. Lastly the Trade Tracker that brings together the
online community working together towards the common goal of enhancing their performance
marketing this will link the Postal Service into the community online thus promoting the
business to reach even the local people.
The values which are most likely to be generated from the collaboration are evident here as they
include enhancement of efficiency as the company is able to search the event cost of operations
that would bring bountiful profits thus its promotion, efficiency is also enhanced through
simplicity and speed as the work load is simplified this increases speed of services delivery to the
people. It has also enhanced novelty that is achieved through creation of new transaction
structures leading in time payment of the postal service’s before delivery and ensuring efficient
delivery. On the other hand it has also created Lock-Ins mainly achieved through switching costs
where the costs are not held constant they vary depending on the time frame and other factors
should be put into considerations to enhance the efficiency of the Postal Services. It has also

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helped in the human resource management sector through provision of appropriate labor to cater
for all the workers in the firm reducing boredom at work and exhaustion the collaboration has
also enhanced proper procurement mainly through internet enabled demand planning. This
reduces time as things are computerized.
The postal service can effectively negotiate with the strategic partners in order to ally with them
by providing the best terms of work for the strategic partners. This includes the provision of
good wages to the partners for their input in the company’s progress this entails continuous
sharing of the available profits by the partners and this should increase annually or monthly as
the company continues to progress. This will motivate the partners to continuously get involved
in the company’s activities by providing the most necessary and appropriate services to the
company. The company as well to establish effective negotiates with the strategic partners there
should be reduced enforcement of excessive penalties on the partners. This involves continuous
agreement of the company and the strategic partners in that incase any of the partners
misbehaves or does not appear to be equal to the task the appropriate actions should be taken to
improve on the company’s profits achievements through consensus and not aimlessly firing of
the partners in case any of them does not appear so equal to the task. This will increase the
productivity of the Postal service Company leading to good profits and good working
environment for both the company’s workers and the strategic partners.
A win-win situation as established means both the companies achieve something at the end of
the services or the collaboration. This is created when the profits are shared equally, here both
the participating parties benefit from the service. like in this case a win –win situation can be
achieved when the working companies come together to share the profits depending on the
amount of work done or the input put in place, the companies may agree with one another that

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after a period of five years the shall renew the same contract in support of another party this will
increase cohesion as the companies will work knowing at the back of their minds there is
something good in store either through payment or creation of more jobs to one another this will
increase the ego to work more and to stay focused on the jobs and to always assist each other.
The companies working together may lead to the best win-win situation as highlighted above
thus promotion of peace and good cohesion between the companies as result much profits will be
made and so productive will be the achieved by the company.

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