Week 5

The threat of substitute products and services:

There are other websites out there that offer the a similar kind of service to that of game.co.uk as they to would also sell and deliver games/games consoles.  As this is the case, game would have to maintain a high standard of customer service in order to to encourage customers to keep returning to their website rather than a different website.

The threat of the entry of new competitors (barriers to entry):

As the game industry is such a profitable area many new companies may try to start up business in this area.  As this often happens, it is important that game.co.uk keep their prices at a level that is both competitive but also appealing to customers so they would want to return and give their custom to game.co.uk in the future.  The game sales industry would be very hard to start up in as companies such as game.co.uk have such vast experience in this area.

The intensity of competitive rivalry:

In order for game.co.uk to remain as one of the most popular game selling companies around, they would have to keep introducing new and exciting innovations with their website and also promotions.  Other companies offering the same kind of service as game would try to be more innovative with their website in order to try and attract more potential customers to deal with themas apposed to business’ like game.  The rivalry between business’ can be a good thing as it could encourage a business to improve in order to be an ll round better business in order to be the best business in their sales area.

The bargaining power of customers/buyers:

With a business like game.co.uk bargaining power wouldn’t come into play as i would usually think bargaining power would work.  This is the case as a person couldn’t just walk into a shop and start to bargain over the price for a ps3 game.  Where a customers bargaining power would come into play would be with the reviews they would give about the company.  If a number of bad reviews were given to a business such as game, they could make some offers in order to regain the customers respect who gave the bad reviews in the first place.

The bargaining power of suppliers:

The suppliers who provide game.co.uk with their stock would be able to baragin with the price of the products to a certain extent.  This is the case as obviously the suppliers would want to get as much as the could but still be reasonable, on the other hand game would want to get their stock at the lowest price possible meaning they would gain a much higher profit after sales.  It is important that the suppliers keep a good relationship with the business as it would be easy for the business to change suppliers as the products they deal with would be readily available for purchase.

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