2. Industry
Competitors
IntensityOf
Rivalry
• There are numerous or equally
balanced competitors as the
industry is highly fragmented.
• High growth in the industry,
coupled by highly volatility,
innovation and cyclicality.
• Very low fixed or storage cost
• Low differentiation between
competitors and low switching
cost
Exit Barriers are Low
Rivalry is High
(The%Structural%Analysis%of%Industries,%1980)%

3. Threat Of
New Entrants
Entry to
barrier is
low
Economic of Scale
– Low it is a highly
fragmented industry.
Product
Differentiation –
There are few product
lines such as Social
Media, Mobile, Display
Ads .
Capital
Requirement – It is
low as startup cost is
low. Advertising agency
work on a percentage
model or retainer
model.
Switching
Cost – it is low
because advertisers
can easily switch
from one agency to
another.%
Access to
Distribution
Channel – Easy
access to
distribution
channel.%
Threat to New Entrance is
Low
(The%Structural%Analysis%of%Industries,%1980)%

4. Bargaining Power
Of Buyers
Full
Information –
High as there is a
lot of transparency
in reporting and
analytics.
Substitute
product –There are
quite a few substitutes like
print media, radio, TV and
movies etc but substitution
doesn’t solve the same
purpose.
The Bargaining Power of Buyer is Moderate
(The%Structural%Analysis%of%Industries,%1980)%

5. Threat Of Substitutes Is LOW
Threat Of
Substitutes Products
Low
• Buyers%Propensity%to%
SubsAtute%%
Low
• Switching%Costs%%
Very
high
• RelaAve%Price%Performance%
of%SubsAtutes%%
(The%Structural%Analysis%of%Industries,%1980)%

6. Bargaining Power
Of Suppliers
The Bargaining Power of Supplier is
Low – Platform Negotiation
(The%Structural%Analysis%of%Industries,%1980)%