This piece of work analyses the German web design industry by using the strategic management tool of the five forces from Michael E. Porter. This tool identifies the key factors that could have an impact on industry competition and whether it is worth entering market or not (Porter, 1980, p.33). This work is limited to the German market because there are differences between other national markets dependent on their technological advance, demographical factors and cultural backgrounds. For instance an emerging nation like Argentina had a growth of 32 percent in the last 12 months in the e-commerce sector and the German market, as a high industrial nation had a growth of only 11 percent (Verisign, 2009).
The model of Porter’s five, which is almost thirty years old, is chosen in order to prove that it is still working with a modern industry like the web design industry. Many essential factors have changed in the last thirty years and it has to be proved if the principle “The state of competition in an industry depends on five basic competitive forces” (Porter, 1980, p.3) is still valid. This external analysis tool was created to cover a wide range of influences affecting an industry. It is used to acquire the awareness about the attractiveness for further research. Companies have to have a good knowledge about their environment but it is not the only model to make decisions.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Porter's five forces
- Intensity of rivalry
- Bargaining power of buyers
- Bargaining power of suppliers
- Threat of entry
- Threat of substitutes
- Critical review of Porter's 5 forces
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to analyze the German web design industry using Porter's five forces model, a strategic management tool. It explores whether this model, almost 30 years old, is still relevant in a modern industry like web design. The analysis focuses on the competitive forces within the industry and assesses the attractiveness of entering this market.
- The application of Porter's five forces model to the German web design industry
- The impact of technological advancements and changing market dynamics on the model's relevance
- Analysis of competitive forces in the web design industry, such as intensity of rivalry, bargaining power of buyers and suppliers, and threat of entry and substitutes
- Assessment of the attractiveness of the German web design market for potential entrants
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The chapter provides an overview of the growth of e-commerce in Germany and the importance of online presence for companies. It introduces Porter's five forces model as a tool to analyze the competitive landscape of the web design industry.
- Porter's five forces: This section delves into each of the five forces: intensity of rivalry, bargaining power of buyers, bargaining power of suppliers, threat of entry, and threat of substitutes. It analyzes these forces in the context of the German web design industry, highlighting factors such as the high number of web designers, low entry barriers, and the competitive nature of the market.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this work are: Porter's five forces, web design industry, competitive analysis, German market, strategic management, e-commerce, online presence, market attractiveness, entry barriers, rivalry, bargaining power, substitutes.
- Quote paper
- Max Adler (Author), 2010, A structural analysis of the German Web Design industry by using the model of Porter's five forces, Munich, GRIN Verlag, https://www.grin.com/document/150711
