Funder Mifflin Inc.

Funder Mifflin Inc.

Introduction

This Paper is basically designed to analyze the strategic management process of social networking website Funder Mifflin Inc. The first part will analyze Porter's 5 forces of competition. The main focus of this study of the main competitors and their competitive position; further the report will also analyze the market details in terms of value, share and position of the website with respect to its competition. We will also provide examples of other online social web sites, and analyze their performance. Moreover, we will also Identify 5 key success factors for Funder Mifflin Inc and address the long-term aims, objectives and goals for Funder Mifflin Inc.

Industry Analysis

Like other online services, the online social networking industry is also growing rapidly. Facebook is the leader in the online social networking industry with more than 50% revenues. The potential substitutes in the industry are also on the high side. On the internet, there are various substitutes for Funder Mifflin Inc, like Facebook, Linkd-in, and other game oriented social networking site; therefore, the industry faces high competition from substitutes (Gibson, 2010).

Porter's 5 forces of competition

The Porter's Five Forces Model provides a broad view of attractiveness in online social networking industry market through distinct perspective.

Threat of New Entrants

Low cost trading is the high-profit potential and high risk industry which involves a lot of investment. Software, web site designs and channels of circulation require many years to develop. Therefore, chances for entry and exit are high for both the potential new entrants and present firms. Gigantic allowance of resources and transformation is needed to succeed in the online social networking industry (Robbins, 2007).

Threat of Substitute Products

Threat of substitute products has increased with time. With websites like Facebook, Orkut, Twitter, Linkedin, Hi5, Netlog, Google + etc.

Bargaining Power of Buyers

Customers are highly price ...