Marvel Entertainment

Micro-Environment (Porter’s Forces)

Customer’s  buying power is rated average or moderate when it comes to films and other entertainment sources. Movie Theatres are the buyers here and they have very low cost of switching towards movies that are better hit and due to that. Marvel’s customers have less brand loyalty due to less cost of switching but still, the buying power is moderate.

 

Supplier’s power is also moderate due to few certain reasons. Marvel is dependant on its suppliers for costumes, designers, makeup artists, camera companies etc. The better the quality of Marvel’s contractors, the better the film and the more the sales. But the demand of Marvel is also very high as a lot of companies would work with Marvel as contractors so the power of Suppliers is moderate too.

 

 

New Entrant’s threat is common for companies, even if they are in monopolistic environment or not. In this era of superheroes, it is safe to assume that new entrants can penetrate the market or old rivals can take over the market share. Marvel has been in competition with DC for decades now but there are other companies making its fair share in the entertainment industry, for example Hellboy which is made by Dark Horse and G.I. Joe which is made by Hasbro has made a very good impression on the geeks. With growing technology and new ways to create and show art, we can expect more companies to enter this industry and if Marvel doesn’t keep up with its game, they might get back the long queue of list of rising companies.

 

New Substitutes threat can be quite alarming for a company. Companies are looking ways to keep customer satisfaction and loyalty and don’t letting them slip into their substitutes hands. Marvel is trying to keep their prices as low as possible on merchandise, video games, comics and online paid movies and keeping their quality better so that they don’t get substituted by companies of their industry.