Group 1
Au Ka Chun, Thad
Chau Yee Ki, Joyce
Wong Ying Kit, Alpha
Lam Chak Fung, Alex
Ng Hio Tong, Toby
Lai Ka Yin, Rika
Duolingo
Competitive Rivalry: Moderate to high
There are quite a number of competitors for Duolingo. However, the Company provides various teaching methods and the learning schedule is flexible, which can accommodate the needs of different customers and offset the impacts of competitive industry to some extent.
Supplier Bargaining Power: Moderate to high
The suppliers of Duolingo are the teachers, and they may need to be qualified with different professions. Thus, it might have a few numbers of suppliers which increases the bargaining power of suppliers.
Nevertheless, Duolingo provides unique experiences to the users such as getting streak which acts as the peer-to-peer interaction.
Buyer Bargaining Power: High
Since Duolingo is free of charge for the basic usage, the switching costs of users are also relatively low and there is no "commitment" (as known as money) to the Company. In addition, the user loyalty seems to be increased due to the personalised features.
Threat of Substitution: Low to moderate
Despite a number of substitutes in the market and the in-app purchases for upgrade functions of Duolingo, most of those companies are still more expensive than Duolingo which makes the threat of substitution lower.
Threat of New Entry: Low to moderate
The market of the language online learning platform is quite competitive and as for a mobile APP, the cost of research and development is high which might be the difficulties for new entry.
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