use Porter’s 5 Forces analysis case

Force
Determinant
Assessment/Impact
Rivalry
Among
Competing
Firms
Industry Growth
– Slow
Industry growth is slow. In fact, the sales of music CDs
through brick and mortar store are drastically declining.
Though sales of music through electronic, digital and
mobile media are increasing, the rate of growth is not
attractive. So in both brick and mortar and digital store the
competition among the existing firms to retain the market
share is very high.
High Fixed Costs The fixed cost is high. This makes the companies be
pressurized to remain productive and increases internal
rivalry.
Threat of
New Entrants
Capital
Requirements –
High
The initial capital required to be invested in the industry is
very high. But given the present music industry scenario,
the returns are not high. This makes the industry less
attractive to new entrants.
Access to
Distribution
Channels –
Restricted
The access to distribution channel is not difficult but the
problem lies in the fact that with spate of piracy, the music
is distributed across the internet for free and anybody can
listen to it or download it rendering purchase of the music
unnecessary. This makes the industry unattractive for new
entrants due to low returns.
Industry Growth
– Slow
Industry growth is slow. In fact, the sales of music...