A Porter's Five Forces Model on MinuteMeet

The Porter's Five Forces Model

by: Matthew Field

The purpose of this Porter's Five Forces Model is to analyse the industry in which MinuteMeet operates in.

The Level of Rivalry In The Market:

There is a large amount of rivalry in the market of social media. Many businesses, such as dating websites, have similar products and they are all located in the same place, the internet. The products are all similar because they seek to bring people together.  Some of MinuteMeet's compettitors have grown so large that they lack the need not advertise.

Availability of Substitute Products:

There is a substantial amount of substitute products that are similar to MinuteMeet's product. These include multiple dating websites.

The Threat of New Entrants To The Market:

There is a large threat of new entrants into the social media market because many businesses in this industry have lost their market share to new businesses and this is a recurring effect.

The Power of Suppliers:

The suppliers are dominant in the relationship between the business and its suppliers. This is because MinuteMeet is a small business and therefore cannot properly influence the terms of buying software and domain names etc.

The Power of Buyers:

The buyers have substantial control in the buying of MinuteMeet's product because there are many other alternative products for them to use and this gives the consumer leverage over MinuteMeet.

Conclusion:

MinuteMeet operates in a very high risk industry because there is a large level of rivalry in the market; there are many substitute products available; there is a substantial threat of new entrants into the market and the suppliers and buyers are very powerful.