Abby requests that you conduct an analysis of the online social networking industry because this is a necessary component of the business plan to eventually be presented to the venture capitalist to obtain funding. As you know, it will also be crucial to obtain a good understanding of the industry environment for developing the strategic plan. Using the library, internet, or any other materials, discuss and assess the online social networking industry in terms of each of Porter's five forces of competition. The goal is to be able to assess the industry's overall attractiveness and identify several key success factors.
The response addresses the queries posted in 952 words with references.
//A strategic plan for any business organization is developed on the basis of the analysis of the industry environment as this preludes to the formulation of strategy. The analysis of business environment of any industry can be done with several strategic tools. The online social networking industry of Abby also needs to have a deep analysis of its industry for assessing the overall attractiveness of the industry. In this regard, the present scenario of the industry is discussed under the same heading.//
Online Social Networking Industry:
The online social networking industry is becoming highly competitive due to the involvement of internet in this business. Due to the advancements in the lifestyles and growth of business professionals, the demand of the social networking services is increasing. This results into an increased competition level. For attaining more and more members, the social networking sites are facing several critical challenges. The dynamics of this business industry is making the companies develop strategies for their business attractiveness and success (Ryall & Craig, 2003).
//With the present status of the online social networking industry, it is clear that the industry analysis is the analysis for the company of Abby to have a good understanding of the key success factors for its business. For this purpose, Porter's Fiver Forces Model is the best tool for industry analysis which is done in the next section.//
Porter's Five Forces Analysis: Online Social Networking Industry
The five forces model of Porter focuses on the five main ...