Porter’s Five Forces of Media Industry in Pakistan


Media industry in Pakistan earned a revenue of Rupees 32.06 billion in 2011. There are approximately 250 active newspapers, 90 TV and 100 FM radio channels (including 25 campus radio stations) and 17,000 journalists in the industry (there were only 2,000 in 2001).

I have tried to analyse the industry through Porter’s Five Forces. The results are given below. Please feel free to share your feedback.

Threat of New Competition

  • Entry barriers (medium)
  • Exit barriers (low)
  • Capital requirement (high)
  • Switching or sunk costs (high)
  • Access to distribution (high)
  • Customer loyalty (low)
  • Industry profitability (high)

Threat of Substitutes

  • Internet (medium)
  • Mobile (low)

Bargaining Power of Customers

  • Customers can easily switch (high)
  • Customers have easy access to the world media (low)
  • Substitutes, like, internet and mobile, are available (medium)

Bargaining Power of Suppliers

  • Power of suppliers (low)
  • Power of content providers (low)

Competitive Rivalry

  • Costly and perishable products (high)
  • Diversified and influential rivals (high)

Conclusion
Porter’s Five Forces analysis reveals:

  • Threat of new competition is medium to high
  • Threat of substitutes is low to medium
  • Power of customers is medium to high
  • Power of suppliers is low
  • Competition in the industry is high

Overall, profitability of media industry in Pakistan lies between medium and high.

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5 thoughts on “Porter’s Five Forces of Media Industry in Pakistan

  1. Pingback: Porters pakistan | Televistashow

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