Group 8
LI
Jiayuan
TENG
Qianyu
ZHANG
Yujia
ZHANG
Leyan
ZHENG
Xiaoyu
Porter’s
Five Forces – 小宇宙（Xiaoyuzhou）
Intensity
of Rivalry among Established Firms
According
to the data in 2024, Himalaya FM, Xiaoyuzhou and Wangyi Cloud Music are the
three platforms with the most users. Spotify, Apple Music, QQ Music also own
some users. Since podcasting is a concept that has only become popular in the
last few years, and users have a high degree of loyalty to the software they
use, so these companies are not particularly competitive with each other.
Bargaining
Power of Buyers
With
the explosive development of podcasts and podcast platforms, users have increasingly
high bargaining power when choosing due to the abundance of alternatives
available. This diversity in choices necessitates that Xiaoyuzhou offers more
attractive content to retain existing users and attract new ones.
Threats
of New Entry
Xiaoyuzhou
has limited ability to prevent the potential new entrants because this application
is a low-cost platform, which has little capital of technological barriers. It
is also quite easy for users to switch to another similar app. There isn’t external regulation existing.
However, Xiaoyuzhou may develop its ability to defend the threat of new
entrants through enhancing user loyalty. It may accumulate prestige to form
brand effect. It can shape usage habits and create a unique image or emotional
value to raise barriers to entry.
Bargaining Power of Suppliers
In
the podcast industry, audio content creators are Xiaoyuzhou's key suppliers.
1.
Large Number of Suppliers: Xiaoyuzhou has a vast pool of potential content
creators (podcasters, audio book narrators, radio show hosts, etc.) who can
contribute to the platform. This abundance of suppliers weakens their
individual bargaining power.
2.
No Dependence on Specific Suppliers: Xiaoyuzhou 's success doesn't depend
heavily on a few key creators. Their content library is diverse and filled with
a wide range of voices, which reduces the power of any individual creator to
negotiate advantageous deals.
3.
Low Switching Costs: it's easy for Xiaoyuzhou to switch from one supplier
to another. This makes it difficult for creators to negotiate favorable terms
if they are unsatisfied with the conditions offered by Xiaoyuzhou.
4.
Competition Among Suppliers: Creators are constantly vying for attention
and audience. The competition among suppliers gives Xiaoyuzhou leverage to
select the best content and negotiate favorable terms.
Threat
of Substitution
1.Availability
of Substitutes: Xiaoyuzhou offers a platform focused on podcasts, and its
substitutes mainly include other audio platforms such as Ximalaya, Lizhi, and
Qingting FM, which provide not only podcasts but also a wider range of audio
content like audiobooks, music, and radio. The substitutes for Xiaoyuzhou are
not limited to Chinese podcast apps but also include international podcast
platforms like Spotify and Apple Podcasts.
2.Price
of Substitutes: Most podcast platforms offer basic services for free, but some
may commercialize through paid subscriptions, advertisements, or additional
value-added services. Xiaoyuzhou currently does not have intrusive advertising,
providing a relatively clean listening environment, which to some extent
reduces user sensitivity to price.
3.Perceived
Quality of Substitutes: The user base of Xiaoyuzhou often has higher
requirements for content quality. Xiaoyuzhou provides high content discovery
value and user stickiness through curated content and community interaction. In
comparison, some other platforms may experience a decline in perceived quality
due to the generalization of content and the presence of advertisements.
Moreover,
for users of Xiaoyuzhou, the cost of switching to substitutes is relatively low
since most podcast content is distributed across multiple platforms. However, Xiaoyuzhou
builds community and more dynamic comment functions, increasing the barriers
for users to switch to other platforms.
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