International Business Case Study. Business & Marketing Case Study

BPO Industry
Name
Institution
Course
Date
BPO INDUSTRY
The Porters five is used to determine the competitiveness of a company. The five porter’s model will be used to determine of BPO industry is competitive and profitable. The five porter’s strategy includes the supplier power, competitive rivalry, buyer power, the threats to new entry, and the threats to substitution. The competitive rivalry examines the strengths and weaknesses of the Industry. BPO industry has strong competitors in the market that is within India, China and other countries in Europe. Additionally the BPO industry also faces stiff competition from external companies. Therefore the competitive rivalry of BPO industry is very strong.
On the other hand the threats to new entry evaluates the possibility of new companies in the market and how they can substitute the existing firms in India. Due to some of the benefits associated with economics of scale and cost benefits of BPO, the threats to new entrants are low. Further, BPO industry has high capital requirements and this is one of the major factor which discourages the entry of new firms.
The supplier’s power influences and determines the prices of the industry. BPO industry can shift to other suppliers because it has cheap substitutes. Since BPO industry depends on the workforce and the input of the company, the supply power is not affected and this does not affect the overall competitiveness of the industry (Kumar, Aquino & Anderson, 2007). The buyer power is the ability of buyers to influence the prices of the products produced by the company. The power of the buyers can be met by the suppliers after increasing the purchasing power of the buyers. L...