Five Forces

- ReThe Cable Industry Conditions Are ambiguous The cable constancys conditions be quite ambiguous for impudently firms thinking to penetrate the mart. The cable industry consists of firms that operate in the wired, 3rd party distribution systems for broadcast schedule. These cable operators offer television programming from cable networks or local television stations to consumers via cable al-Qaeda on a subscription basis.It is important to note that the industry is different from orbiter providers, Internet service providers, or VoIP services, whose main difference is in stand. important players in the cable industry operate on a nation-wide basis. The biggest holy terror to this industry is high barrier to entry. This is due to a number of factors. First, dandy requirements are high because infrastructure is costly such as the fiberoptic lines that have been introduced to offer customers higher-priced, enhanced or bundled services.There is a medium train of industry concentration as the top four companies construct nearly 55% of the industry over in all. Government regulations are also high, since operators must be licensed by the FCC through extensive registration. Thus programming rights, infrastructure investment, and high regulations wassail significant expenses and hardship for new firms entering. Barriers to entry, unlike all other factors in the five forces model, actually raises profits in a five forces analysis. This is because high barriers to entry prevent firms that could easily come into the market and take away profits.Other forces such as supplier power, buyer power, affright of substitutes, and industry rivalry, have moderate power in this industry. This would usually present a case of relatively lower profits in the industry however we see that industry profitability is way above the industry average. It seems that the established firms in the industry are profitable because there are both high barriers to entry and many fi rms have consolidated with center suppliers. Thus profitability in this industry is quite ambiguous.