Orlando Bizline is among agencies that deal with robust and complex accounts lists of several large businesses. The paper aims to analyze the competitive position of Orlando Bizline in Miami and Atlanta. For this purpose, Michael Porter’s Five Forces Model is used as it is considered as the most effective way of analyzing the competitive environment. The model is comprised of a framework that includes five factors (Dess, Lumpkin, Eisner, & McNamara, 2013).
Figure 2: Porter's Five Forces Model (Crackmba, 2012)
Threat of Substitute Products
The threat of substitute products is a common risk factor for companies. The only way to avoid such a risk is to make products and services distinctive and unique. Adding distinctiveness to products and services can help a business in achieving a competitive edge. One of the major strengths of Orlando Bizline is its ability to offer creative products. The company should stick to the continuous improvement strategy to sustain its competitive position. Also, Orlando Bizline needs to develop further innovative approaches and products for leading the market.
The threat of the new entries
At present, Orlando Bizline does not have a serious threat related to new arrivals in the market. Also, it is a noticeable factor that new arrivals face various challenges in achieving a better position in the market. Moreover, companies usually prefer to make deals with advertising agencies that are in the market for longer period and are experienced in the field. Therefore, the threat of new entrants is significantly low for Orlando Bizline.
Rivalry among existing firms
In the advertising industry, the threat of existing firms is high. Two local advertising agencies are the major competitors of Orlando Bizline. However, Orlando Bizline is superior to them concerning the risks they bear. Rivals of the company are at high risk because their major business depends on one or two major clients. On the other hand, Orlando Bizline has more major clients as compared to its competitors. Also, the company has some less significant rivals including local advertising agencies of Atlanta and Miami.
The bargaining power of buyers
Buyers’ power refers to the pressure that customers can exert on businesses. Buyers usually use their power to get better customer service, lower prices, and higher quality products. The buyers’ power also depends on numbers of buyers in a specific location (Harvey, 2013). In the advertising agency market of Atlanta and Miami, it is observed that the power of buyers is high. Orlando Bizline uses customer centric approach to provide its customers with products and services they desire to attract more customers.
The bargaining power of suppliers
Suppliers’ power in a market refers to the potential suppliers that have to persuade companies for agreeing to their terms. The power of suppliers depends on the number of suppliers of a particular product in the market. If the suppliers of a product are less in the market, then they usually demand higher prices as they are in a stronger position. If the suppliers of a particular product are many, then buyers dictate the price and suppliers have to agree to the company’s terms (Needle, 2010). In the case of Orlando Bizline, Suppliers power is moderate that means neither high nor low. Suppliers in Miami and Atlanta are not many in numbers that enables buyers to dictate terms sometimes.
References
Crackmba. (2012). Porter's Five Forces Model. Retrieved from http://crackmba.com/porters-five-forces-model/
Dess, G., Lumpkin, G. T., Eisner, A., & McNamara, G. (2013). Strategic management text and cases. New York: McGraw-Hill Higher Education.
Harvey, S. J. (2013). The ethics and economics of agrifood competition. New York: Springer.
Needle, D. (2010). Business in context: An introduction to business and its environment. New York: Cenage Learning.
