Five Force of New York Times

332 Words2 Pages
Porter’s Five Forces Analysis This section is the analysis of the news industry in United States. • Threats of new entrants: Moderate This can be analyzed by looking at the entry barriers of the news industry. News industry is where having a well-established reputation is highly crucial to the existence of the business. In addition, the required investment to start-up and compete in this industry is enormously high, which makes it difficult to enter in the industry. An economy of scale is another factor for new comers to consider before investing in the industry. However, the news publishing industry is facing a decline in circulation along with less differentiation in the industry. • Threats of substitute products: High The ways news is being disseminated has adversely affected the well-being of traditional newspaper. The increasing availability of News site on the Internet is one of the major factors affecting the circulation of printed newspaper. Blogs, social network, web board allows people to self-publish anything. • Intensity of competition: High The New York Times primary competition is in the publishing industry and the main competitors include; Gannett Co., Inc; News Corporation; and The Washington Post Company. They are large-size Companies with high circulations and reach competing for the same customer. • Bargaining power of suppliers: Low The New York Times’ supplies is similar to those of its competitors, the cost of obtaining input is not significant and the cost of switching supplier will not affect the adversely. This makes it difficult for the suppliers to have any bargaining power over the Company. Also, the Company is the 3rd largest daily newspaper in United States which gives them the advantage of the over their suppliers. • Bargaining power of buyers: High There is no distinguishing differentiation offered to the
Open Document