Porter’s Five Forces Analysis for Kickstarter Bike in Australian Market

This document provides a Porter’s Five Forces analysis for Kickstarter Bike in the Australian market. It examines the threat of new entry, threat of substitution, bargaining power of buyers and suppliers, and competitive rivalry. The analysis helps identify market opportunities and risks for Kickstarter Bike.

Industry
Consulting

Table of Contents
Main Body ......................................................................................................................................3
Porters five forces analysis..........................................................................................................3
REFERENCES ...............................................................................................................................5

MAIN BODY
Porter’s five forces analysis
Porter’s five forces model is an essential element which helps to identify and analyse five
competitive forces that shape industry (E. Dobbs, 2014). It helps to make the effective plan for
Kickstarter bike in order to make effective selling technique in Australian market. In order to
identify the market situations and risk factor, Kickstarter needs to measure the opportunity and
threat which makes it easier for them to make stable position in Australian market. This is the
best product and for Australians to maintain the body fitness, core, cardio, gluts, thigh etc. with
the help of porter’s five forces of the industry, company can easily get the best effective process
of working. Kickstarter is planning to distribute the product in Australia for which they need to
adopt porter’s five forces model in order to mitigate their risk and uncertainties (Sutherland,
2014). It helps to focus on the main objectives which provide the best effective source.
Threat of new entry (High)
Threat of new entry can increase the challenge for the existing companies in terms of
profit margin (Sutherland, 2014). Along with that, it also helps to make the effective changes in
the industry. Kickstarter is a unique and different product which will going to be sold in
Australian market. It gives issues and conflicts to existing companies. It may get the attraction of
young people, children to try the ride of Kickstarter (Lăzăroiu, 2015). Its features and attributes
influence customer’s attractions. This is the new entrant in the Australia market which gives
heavy competition to existing companies. On the other side, it gives new opportunity and threats.
Entry of new entries may arise barriers to organisations. For Kickstarter require giving attractive
services frequently in terms to retain the existing customers.
Threat of substitution (High)
There are huge substitution are available for every product and services. In order to
sustainable market position. Kickstarter should adopt more new unique creative products for
their potential customers (Porter and Heppelmann, 2014). Otherwise, new entrants may launch
substitute products at low prices to give high competition. New technology and challenging
market situations may also create new substitution for which customers switch the company.
Kickstarter has different substitutes like Scotty, motor bikes, electric cycles, etc. that give
challenges and issues for the industry (Yunna and Yisheng, 2014).
Bargaining power of buyers (Moderate)

Bargaining power of customers is high when number of product and services are high. In
this situations company has to give services on customer demands. Besides, in case of single
product, bargaining power is low (Sutherland, 2014). Kickstarter is a unique product which
involves low bargaining power of customers. It gives unique and creative concept to the
Australians. In order to take the best possible effects to maintained the proper balance. Due to
heavy competition between companies generally target market is very high on demanding.
Bargaining power of suppliers
Suppliers need to adopt effective management tools and techniques in terms of heavy
instant costing. In order to hold the business activities, company needs to maintain the healthy
relations with the suppliers. Bargaining power of suppliers affect company’s profit margins. It
gives a negative impact on the sales quality as well. Kickstarter is having limited supplier but in
that case, bargaining power is moderate (Mathooko and Ogutu, 2015). Kickstarter needs to adopt
strong relations with their suppliers in order to get quality raw material for their company’s profit
margins. Besides, it affects company as well by giving low quality raw material to company
which may give negative impression on the product’s quality and dissatisfaction among
customers.
Competitive Rivalry (moderate)
Rival firms affect the direct marketing functions or on marketing activities. Like
organisation needs to protect the environment from strategies of competitive firms it gives
negative impact on the organisation behaviour. Existing competitors are the biggest challenges
for Kickstarter which affected by the risk or uncertain events. All competitors are fight for their
brand image or market share. Increasing competition reduces the profit margin of all
organisations (Mathooko and Ogutu, 2015). Rival firms for Kickstarter is may be motor bike
companies, auto mobile companies etc. same product as their competitors affect each other in
terms of pricing. Before making any plan or strategy, company needs to adopt competitor’s
strategies or pricing plans in order to beat the market challenges. Different unique strategy and
business plan differentiate company from its rival firms. It gives further opportunity to grab
customer’s faith and loyalty. Through the same, company enhances their sales revenue
(Mathooko and Ogutu, 2015).

REFERENCES
Books and Journals
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review. 24(1). pp.32-45.
Lăzăroiu, G., 2015. The role of the management consultancy industry in the knowledge
economy. Psychosociological Issues in Human Resource Management. 3(2). pp.71-76.
Mathooko, F. M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management. 29(3). pp.334-354.
Porter, M. E. and Heppelmann, J. E., 2014. How smart, connected products are transforming
competition. Harvard Business Review. 92(11). pp.64-88.
Sutherland, E., 2014. Lobbying and litigation in telecommunications markets–reapplying
Porter’s five forces. Info. 16(5). pp.1-18.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable
Energy Reviews. 40. pp.798-805.