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

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

Strategic opportunities and threats in the film industry using porter five forces model 2
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

Strategic opportunities and threats in the film industry using porter five forces model 3
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.

Strategic opportunities and threats in the film industry using porter five forces model 4
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