Michael Porters 5 Forces
Name: Abigail Natasha Godinho.
Roll no: 15
Business Planning And Forecasting.
Michael Porter has developed a model that lists five forces which affect an industry. The paper below uses this model to analyze the business environment of the newspaper Midday.
The English daily, Midday, is the chief publication of Midday multimedia ltd. The target audience of this fun filled, masala paper is the youth. * Rivalry: Midday faces a lot of competition especially from the famous broadsheet ‘The Times of India’. There are other rivals such as Hindustan Times, Asian Age and Indian Express. However in terms of its target audience and it being a tabloid, its main rival is Bennett & Coleman’s Mumbai Mirror. In fact, Mumbai mirror was introduced so as to pose as a competition to Midday .it is priced lower than Midday. This has been a major force since Mumbai Mirror has taken quite a lot of Midday’s market share.
* Threat of substitutes: For many years substitute for newspapers were news readings on government owned radio channels and television news channels. However it is not a major concern since people still prefer reading newspapers to watching news on the TV sets or hearing the news for 5 minutes. However, with the increasing awareness of global warming and the subsequent awareness to cut down the usage of paper, the latest substitute for newspapers is E-paper. This is already being seen in countries like the USA. People are switching on to reading the newspaper on the newspaper web sites rather than buying the paper itself. Since, the internet is used daily by today’s youth; internet news services such as ‘Rediff’ are also major substitutes.
* Buyer power: In terms of paper distribution, distributors have a great power to increase their commission due to the number of newspapers in the market. Moreover, the relationship developed between the distributors and the newspaper over the years increases the bargaining power of the distributors.
Roll no: 15
Business Planning And Forecasting.
Michael Porter has developed a model that lists five forces which affect an industry. The paper below uses this model to analyze the business environment of the newspaper Midday.
The English daily, Midday, is the chief publication of Midday multimedia ltd. The target audience of this fun filled, masala paper is the youth. * Rivalry: Midday faces a lot of competition especially from the famous broadsheet ‘The Times of India’. There are other rivals such as Hindustan Times, Asian Age and Indian Express. However in terms of its target audience and it being a tabloid, its main rival is Bennett & Coleman’s Mumbai Mirror. In fact, Mumbai mirror was introduced so as to pose as a competition to Midday .it is priced lower than Midday. This has been a major force since Mumbai Mirror has taken quite a lot of Midday’s market share.
* Threat of substitutes: For many years substitute for newspapers were news readings on government owned radio channels and television news channels. However it is not a major concern since people still prefer reading newspapers to watching news on the TV sets or hearing the news for 5 minutes. However, with the increasing awareness of global warming and the subsequent awareness to cut down the usage of paper, the latest substitute for newspapers is E-paper. This is already being seen in countries like the USA. People are switching on to reading the newspaper on the newspaper web sites rather than buying the paper itself. Since, the internet is used daily by today’s youth; internet news services such as ‘Rediff’ are also major substitutes.
* Buyer power: In terms of paper distribution, distributors have a great power to increase their commission due to the number of newspapers in the market. Moreover, the relationship developed between the distributors and the newspaper over the years increases the bargaining power of the distributors.