Porters Five Force Model in Social Networking Industry

Management
Facebook
Student’s name

Management 1
Introduction
Facebook one of the well-known social networking website which helps people to
remain in touch with one another, share photos and meet new people. Moreover, till dated
there are 30 million active users via connecting through Facebook (Zeckerberg, 2019). As
the main aim of initiating this website was to give people a way to share information in an
easy and entertaining way. Hence, by this, Facebook has become one of the largest social
networking sites with the education focus (Nations, 2018).
Porters five force model
(Source: E. Dobbs, 2014)
Threat of five forces in social networking industry-
As theory of porters’ five-force model generates from five specific elements, which
contributes to the overall profitability of a business, whether they are based on other fields of
businesses or business, which works in the same industry. The major factors are threat of the
new entrant, threat of substitution, bargaining power of the suppliers, bargaining power of
buyers and lastly rivalry amongst existing competition.
Threat of competitors- Competitive rivalry factor or the strong competition among the
competitors is having a greater impact over their existing business in which businesses are
selling the same products and services, whether in terms of social media platforms,
successful competition, and are succeeding, if they will perform something different from the