Stability and Market Position of Gignine : Report
Added on -2020-07-22
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STRATEGICMANAGEMENT
Gignine belongs to global services industry which is involved in connecting serviceproviders to the ultimate consumers (Gignine, 2018). It provides operating system which workson the model of uber which uses geo location and mobile devices. The model helps indeveloping trust of the consumers by provided high skilled services to them (E. Dobbs, 2014). Itindustry of UK is considered to be the fast-paced market place which requires constantinnovation so that adequate amount of market share can be earned by the organization. Theeconomy of Gignine is at boom. However, disruption can be found in changes in mobiletechnology, demographics etc. It normally follows decentralised based model which is based ona blockchain. To analyse the stability and market position of Gignine, porter's five forces modelcan be applied in the following manner:Bargaining power of suppliers: Bargaining power of the suppliers tends to define therelationship of the company with the supplier who deliver services to the organization.The position of the supplier may be ambitious in case of IT industry. It is easy to bargainwith them as there are variety of suppliers who are available to deliver services to theentity. However, in case of Gignine, the bargaining power of the organization in case ofsuppliers is high. There is no monopoly available for the same and the organization caneasily switch from one supplier to other without any difficulty.Bargaining power of buyers: It is an important concept of porter's five forces, where,bargaining power of the buyer is determined. It ascertains the position of the buyer. Incase of IT industry, the bargaining power of the buyer is high due to availability ofvarious companies belonging to the similar field. Hence, Gignine has to get involved incompetitive pricing strategy to remain competitive in the market (Mathooko and Ogutu,2015). Hence, the services offered by this company is competitive enough in the market.Moreover, company can bring adequate amount of changes in the same by bringingcertain differentiation in the products and services being offered by Gignine. Availability of substitutes: It ensures in addressing the availability products and servicesbeing offered by other companies in the market. Since, there are various companies whooffer similar kind of services and products hence consumer easily switch from onecompany to other if they are not satisfied with the services being offered by Gignine. Ifthere are adequate number of companies available to offer substitute products in thatcase, Gignine can compete with them on the basis of price only (Rothaermel, 2015). The2
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