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Analysis Of Audible.Com Using Porter’s Five Forces

1567 words - 6 pages is the leading online audio entertainment and information service. It sells audio content like audio books, lectures, print publications, audio editions, performances, speeches, study material, as well as other audio. The firm has more than 144,000 hours of audio content from at least 530 content partners with more than 40,000 titles. All the content is available for computer playback, burning to audio CD and listening using portable music device. The firm uses its Audible manager software in downloading, scheduling, managing and playing audio selections. The manager software also allows customers to listen and download spoken content and transfer to Audible Ready players. The firm is the exclusive provider of digital content. This essay analyzes
Porter’s five forces assist to evaluate where the firm’s power lie in a given market and the attractiveness of the firm to other companies and businesses with respect to buyer power, supplier power, threat of new entrants, competitive rivalry, and threat of substitution. With respect to, their market is selling audio content online. Supplier power for is medium to high. The firm has an advantage with its partners who offer only specific products through less expensively as compared to other companies or websites. However, some of the audio content is offered through many other websites and stores, which can be used instead of As a result, this pulls the firm’s power from the highest on the market to medium power. In spite of that, is a supplier of large audio content. The firm is famous for being respected and reliable. This implies that the commitment of outside firms offers the firm with a significant amount of supply power (Williams 39). buying power is relatively medium. In regard to customers and the time when the use of the internet has exploded, the firm seems to have the highest possible power. Using, consumers have the option to stop or never to use the services abruptly. However, the major interesting aspect about is that the majority of people use the services continually. Only few consumers switch because of issues with the firm. Even though online shopping customers hold all the power,’s low prices attract people and sustain them. This makes the firm to have medium level power (Williams 40).
In regard to competitive rivalry, is among the first firms to enter the e-commerce market. Consequently, it has established itself as an aggressive and a large competitor. The firm’s innovation, which can be attributed to Amazon, has solidified. It is not going to allow competitors to come and take some parts of the market. As a result, has a low competitive rivalry. Competing with companies already successful is hard, and some companies cannot even keep up (Williams 40).
There is a low threat of substitution. has diverse audio products....

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