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porter's five forces
Sana Kamal
Created on February 8, 2024
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Porter's Five Forces
Victoria's Secret's performance in lingerie industry
Bargaining power of buyers
Rivalry among existing competitors
Threat of substitute products
Bargaining power of suppliers
Threat of new entrants
Porter's Five Forces
Booking.com performance in lingerie industry
Bargaining power of buyers
Rivalry among existing competitors
Threat of substitute products
Bargaining power of suppliers
Threat of new entrants
Threat of substitute products:
We reckon there's no substitute to lingerie.
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.
Threat of substitute products:
We reckon there's no substitute to lingerie.
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.