Zappos Portar Five Forces Analysis
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Porters 5 Forces are:
The threat of the entry of new competitors: Zappos will be able to maintain the pressure from the threat of new competitors because they already are an established company with loyal customers who know how to use and like the website. The threat of new competitors would increase if they had better, more competitive prices than Zappos.
The threat of substitute products or services: Since there is no real substitute for the products Zappos offers there is no pressure from the substitution of products.
The bargaining power of customers: there is no bargaining power for customers, which decreases the pressure for Zappos.
The bargaining power of suppliers: Zappos has already established relationships with suppliers, and they have a large number of suppliers. The wide number of suppliers decreases the pressure of bargaining power from suppliers. There are many other suppliers that Zappos can use.
The intensity of competitive rivalry: Zappos has a lot of pressure from the intensity of competitiveness because there is a chance that another company could offer better products and prices than Zappos. In order to succeed and lower pressure from competitive rivalry Zappos needs to maintain being on top. Zappos needs to continue to offer an easy to use website and grow their customer base so they can decrease the pressure.
Porters 5 Forces are:
The threat of the entry of new competitors: Zappos will be able to maintain the pressure from the threat of new competitors because they already are an established company with loyal customers who know how to use and like the website. The threat of new competitors would increase if they had better, more competitive prices than Zappos.
The threat of substitute products or services: Since there is no real substitute for the products Zappos offers there is no pressure from the substitution of products.
The bargaining power of customers: there is no bargaining power for customers, which decreases the pressure for Zappos.
The bargaining power of suppliers: Zappos has already established relationships with suppliers, and they have a large number of suppliers. The wide number of suppliers decreases the pressure of bargaining power from suppliers. There are many other suppliers that Zappos can use.
The intensity of competitive rivalry: Zappos has a lot of pressure from the intensity of competitiveness because there is a chance that another company could offer better products and prices than Zappos. In order to succeed and lower pressure from competitive rivalry Zappos needs to maintain being on top. Zappos needs to continue to offer an easy to use website and grow their customer base so they can decrease the pressure.