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    Portes Five Analysis

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    Dotecho Jzo Ey
    The bargaining power of OPPO's suppliers is low due to OPPO's large number of globally dispersed suppliers that it can easily switch between. The bargaining power of buyers is low to moderate due to many competitors and low switching costs moderated by OPPO's quality and loyalty. The threat of substitutes is low to moderate due to many competing brands making similar low-cost products. The threat of new entrants is low due to barriers like investment, branding, and distribution needed to compete with OPPO's strong position. The level of competitive rivalry is strong with intense competition between major competitors like Huawei, iPhone, and Samsung for market share in the saturated industry.

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    Portes Five Analysis

    Uploaded by

    Dotecho Jzo Ey
    175 views7 pages
    The bargaining power of OPPO's suppliers is low due to OPPO's large number of globally dispersed suppliers that it can easily switch between. The bargaining power of buyers is low to moderate due to many competitors and low switching costs moderated by OPPO's quality and loyalty. The threat of substitutes is low to moderate due to many competing brands making similar low-cost products. The threat of new entrants is low due to barriers like investment, branding, and distribution needed to compete with OPPO's strong position. The level of competitive rivalry is strong with intense competition between major competitors like Huawei, iPhone, and Samsung for market share in the saturated industry.

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    PORTES FIVE ANALYSIS

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    The bargaining power of OPPO's suppliers is low due to OPPO's large number of globally dispersed suppliers that it can easily switch between. The bargaining power of buyers is low to moderate due to many competitors and low switching costs moderated by OPPO's quality and loyalty. The threat of substitutes is low to moderate due to many competing brands making similar low-cost products. The threat of new entrants is low due to barriers like investment, branding, and distribution needed to compete with OPPO's strong position. The level of competitive rivalry is strong with intense competition between major competitors like Huawei, iPhone, and Samsung for market share in the saturated industry.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    175 views7 pages

    Portes Five Analysis

    Uploaded by

    Dotecho Jzo Ey
    The bargaining power of OPPO's suppliers is low due to OPPO's large number of globally dispersed suppliers that it can easily switch between. The bargaining power of buyers is low to moderate due to many competitors and low switching costs moderated by OPPO's quality and loyalty. The threat of substitutes is low to moderate due to many competing brands making similar low-cost products. The threat of new entrants is low due to barriers like investment, branding, and distribution needed to compete with OPPO's strong position. The level of competitive rivalry is strong with intense competition between major competitors like Huawei, iPhone, and Samsung for market share in the saturated industry.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    PORTES FIVE ANALYSIS

    Bargaining Power of Suppliers: low


    The bargaining power of OPPO suppliers is low. Its products
    are made globally in 12 countries in 590 factories. While individual
    suppliers are small in size, they do not have the ability of forward
    integration either. This reduces the chances of competition from
    suppliers. Moreover, the number of suppliers is high and they are
    scattered throughout the world. It is why individual suppliers
    cannot exert any pressure on OPPO. The brand sets standards for
    its suppliers to comply with. If a supplier does not meet to the
    standards, OPPO can easily switch to another. However, in such a
    case, the supplier would be losing a major source of revenue.
    Overall, OPPO holds strong control over its suppliers and audits
    them regularly.
    Bargaining power of buyers: low to
    moderate
    The bargaining power of Nike’s buyers is low to
    moderate. The number of its competitors is not so small and
    not very large. Apart from Samsung and IPHONE there are
    other competitors like VIVO and Panasonic. There are many
    other local and international brands also that compete with
    OPPO. The switching costs for customers are low. To some
    extent this force is moderated by the quality and marketing
    of OPPO’s products. OPPO focuses on performance ,design
    and the beauty of technology. It is why it has been able to
    build good customer loyalty. This reduces the bargaining
    power of individual buyers which is low to moderate.
    Threat of substitutes: low to moderate

    The threat of substitute products is moderate for


    OPPO. It is because a large number of competing
    brands make similar or matching products. There are
    several brands in local and international markets that
    make low priced smartphone compared to OPPO.
    These brands offer lower priced substitute products
    for OPPO. To some extent this threat is moderated by
    the quality and design of OPPO products. Overall, the
    threat from substitute products is moderate.
    Threat of new entrants: Low

    The threat of new entrants for OPPO can be considered low to


    moderate. It is because while the investment for starting the business
    is not very large, still there are other requirements that are not easy to
    fulfil. Apart from production, there are marketing, distribution and
    supply chain management that require investment, skilled workers
    and time. Building a brand image and equity are also difficult. These
    factors moderate the threat from the new entrants. For any new
    brand, it is not possible to create the kind of brand image like OPPO in
    a short span of time. It takes time, efforts and capital investment.
    OPPO’s strong position in the market mitigates the threat to a large
    extent. Based on these factors the threat from new entrants is low.
    Level of Competitive Rivalry: Strong
     
    The level of competition in the sports industry is strong.
    Some of the major competitors of OPPO are Huawei,
    IPHONE and Samsung. The industry has grown saturated
    and the existing players are engaged in tough competition
    for deeper market penetration and to snatch away market
    share from each other. Brands invest a lot in marketing and
    other things. The number of top players and direct
    competitors of OPPO is low, however that makes the
    competition even intense. Overall, the level of competition
    in the industry is strong.
    COMPETITORS

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