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porter's five forces

Sana Kamal

Created on February 8, 2024

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Victoria's Secret's performance in lingerie industry

Porter's Five Forces

Threat of new entrants

Bargaining power of buyers

Threat of substitute products

Rivalry among existing competitors

Bargaining power of suppliers

Booking.com performance in lingerie industry

Porter's Five Forces

Threat of new entrants

Bargaining power of buyers

Threat of substitute products

Rivalry among existing competitors

Bargaining power of suppliers

We reckon there's no substitute to lingerie.

Threat of substitute products:

Bargaining power of suppliers(11): 1.Low supplier bargaining power: the existence of numerous suppliers 2. High Availability of substitutes: low concentration of suppliers, so that VS has greater power to negotiate the price) 3. Low switching costs.

Bargaining power of buyers: 1. Low switching cost 2. High availability of information: rise of e-commerce has made it easier for customers to find the best price and product that meet their needs 3. High price sensitivity (10) 4. High customer loyalty in the lingerie industry. (10)

Rivalry among existing competitors: 1. Highly competitive lingerie market(10) 2. Competitive direct rivalry: Ann summer, Calvin Klein… 3. Indirect competitors: Apparels brands, department stores: Primark, M&S… 4. High brand loyalty(10)

Threat of new entrants(11): 1. Technology: E-commerce has made it possible for new lingerie brands to sell products online without physical stores. 2. Low barriers to entry: low investment needed to enter the market. 3. Customer loyalty: VSCO has a loyal customer base. However, new entrants can still challenge the businesses by targeting a niche market or offering a unique value proposition.

We reckon there's no substitute to lingerie.

Threat of substitute products:

Bargaining power of suppliers(11): 1.Low supplier bargaining power: the existence of numerous suppliers 2. High Availability of substitutes: low concentration of suppliers, so that VS has greater power to negotiate the price) 3. Low switching costs.

Bargaining power of buyers: 1. Low switching cost 2. High availability of information: rise of e-commerce has made it easier for customers to find the best price and product that meet their needs 3. High price sensitivity (10) 4. High customer loyalty in the lingerie industry. (10)

Rivalry among existing competitors: 1. Highly competitive lingerie market(10) 2. Competitive direct rivalry: Ann summer, Calvin Klein… 3. Indirect competitors: Apparels brands, department stores: Primark, M&S… 4. High brand loyalty(10)

Threat of new entrants(11): 1. Technology: E-commerce has made it possible for new lingerie brands to sell products online without physical stores. 2. Low barriers to entry: low investment needed to enter the market. 3. Customer loyalty: VSCO has a loyal customer base. However, new entrants can still challenge the businesses by targeting a niche market or offering a unique value proposition.