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.
Table of Contents
1 Introduction
2 Porter’s five forces
2.1 Intensity of rivalry
2.2 Bargaining power of buyers
2.3 Bargaining power of suppliers
2.4 Threat of entry
2.5 Threat of substitutes
3 Critical review of Porter’s 5 forces
4 Conclusion
Research Objectives and Key Topics
This work examines the competitiveness and market attractiveness of the German web design industry by applying Michael E. Porter’s "Five Forces" strategic management model, while assessing the model's ongoing relevance in a modern, digitized market environment.
- Strategic analysis of the German web design market
- Application of Porter’s Five Forces to digital services
- Evaluation of industry entry barriers and competitive intensity
- Analysis of customer and supplier bargaining power in e-commerce
- Assessment of the model's validity for modern, fast-paced industries
Excerpt from the Book
1 Introduction
The turnover of e-commerce is still growing. German economic analysts expect a growth of another 10 percent for 2010 (Statista, 2009). Companies need to sell their products online in order to stay competitive. But in today´s online environment it is not only enough to offer their products on the internet, but also a well structured online shop which can be found in search engines. To realize this, companies need web designers and online marketers. There is still a lot of money involved but is it really worth going into this market? (Tedeschi, 2007)
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.
Summary of Chapters
1 Introduction: This chapter outlines the growing importance of the German e-commerce sector and introduces the objective of using Porter’s Five Forces to analyze the web design industry.
2 Porter’s five forces: This section provides a detailed breakdown of the five competitive forces (rivalry, buyers, suppliers, new entrants, and substitutes) specifically within the context of the German web design market.
3 Critical review of Porter’s 5 forces: This chapter evaluates the limitations of Porter’s traditional model when applied to modern, rapidly changing industries and suggests the need for supplementary analytical tools.
4 Conclusion: The final chapter summarizes the findings, confirming that while competitive pressures exist, the web design industry remains an attractive market with viable growth opportunities.
Keywords
Web design, Porter’s Five Forces, E-commerce, Industry analysis, Market competitiveness, Bargaining power, Entry barriers, Strategic management, Digital economy, Search engine optimization, Online marketing, Business strategy, German market, Competitive rivalry, Technological advancement
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on analyzing the attractiveness and competitive landscape of the German web design industry using Porter's Five Forces framework.
What are the central themes discussed in the work?
The central themes include competitive rivalry, the impact of technological changes on business models, market entry barriers, and the evolving power dynamics between web design agencies and their clients.
What is the main objective of the analysis?
The main objective is to determine if entering the German web design market is financially worthwhile and to test the applicability of a thirty-year-old strategic model in the modern digital age.
Which scientific methodology is employed?
The author employs an external industrial analysis based on Michael E. Porter’s Five Forces, supported by current market data and empirical questionnaires distributed among industry participants.
What topics are covered in the main body?
The main body covers the intensity of rivalry, the bargaining power of customers and suppliers, threats from new market entrants, potential substitutes for web design services, and a critical reflection on the model itself.
Which keywords define this publication?
Key terms include Web design, Porter’s Five Forces, E-commerce, Market entry, and Competitive strategy.
How do web design agencies handle competition regarding pricing?
Agencies generally operate in an environment of low differentiation, meaning they compete less on price and more on service optimization, SEO performance, and industry reputation.
Does the author suggest that the Porter model is still relevant today?
Yes, the author concludes that while the model is useful for gaining an overview of the external environment, it should be applied cautiously and combined with other tools due to the increased speed of change in the information age.
- Citation du texte
- Max Adler (Auteur), 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
