Porters 5 Forces of Pandora

Porters 5 Forces of Pandora

  • Submitted By: joalin1
  • Date Submitted: 04/03/2013 9:01 AM
  • Category: Business
  • Words: 1147
  • Page: 5
  • Views: 5

Porters five forces

Industry rivalry:

Many different stakeholders influence the jewellery market and even though Pandora have accomplished being the 3rd biggest jewellery manufacturer in the world, they are still facing serious competition from the number one Tiffany & Co. and the number 2 Cartier, which are the market leaders of the jewellery market. Currently the 3 of them are having such a high level that it is hard – Almost impossible - for new and smaller players to be considered much threat.
Even though Pandora is the 3rd biggest jewellery manufacturer, it can never consider their position safe as the market is based on fashion and quickly alternating trends.
Their economical strength provide the possibility of focusing on a wider international scale, which in several cases crushes the smaller local competitors in the process as their narrow market is taken over by the international player.

Pandora was until 2011-2012 able to dodge the financial crisis in which most of their competitors suffered great loses and ultimately shut down several of them in the process.
Not only were they able to dodge it they actually succeeded in experiencing a constant growth from 2008 to 2011. As a part of their future plan to secure growth they have started to enter market with high potential, which includes: Italy, China and Russia.
The competition in the jewellery market is intense no matter where in the world, the company chooses to enter. The competitors are as different as the market. Pandora is in a good position as they just entered new markets in different sectors of the world, whereas their closest competitors are currently having 50% of their turnover in the US.

Threats of new entrants:

Every new entrant is a new threat to the established companies position.
It is not hard to get entry to the jewellery market as only very little knowledge is required to start up a internet store selling jewellery. However to entry the same league as...

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