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Porter Five Force Model Analysis Limelight:

Here is a Porter's Five Forces analysis of Limelight Networks, Inc

1--Rivals In The Market:-

Limelight Networks, Inc. faces fierce competition in the Internet information providers sector.
The organization's long-term profitability is negatively impacted by this competition, which
can also result in price wars and expensive marketing.

Example:-
 High competition in the content delivery network (CDN) market

 Competitors like Akamai, Cloudflare, and Verizon Digital Media Services

 Competition leads to higher marketing and sales expenses

2--Danger Of New Entrants:-


By lowering prices, cutting expenses, and offering clients new value propositions, new
Internet information providers provide innovation and exert pressure on Limelight
Networks, Inc.

Example:-
 Moderate barrier to entry due to need for significant infrastructure investment

 New entrants like Amazon Web Services (AWS) and Google Cloud CDN

 Innovation and price competition from new entrants

3--Bargaining Power of Suppliers:-


Suppliers with a strong market position have the ability to reduce the margins that
Limelight Networks, Inc. can make. Strong suppliers in the technology sector leverage their
bargaining strength to demand higher prices from the companies.

Example:-
 Limelight has multiple suppliers for infrastructure and equipment

 Low switching costs for suppliers

 Limelight has significant bargaining power

4--Customers' Bargaining Power:-


Customers are frequently a picky group. Their goal is to spend the lowest possible amount
to purchase the best options available. The customers' bargaining power increases with
the size and strength of Limelight Networks, Inc.'s client base.
Example:-
 Large customers have some bargaining power due to volume purchases

 Customers can switch to competitors if prices are too high

 Limelight's strong brand and service quality reduce customer bargaining power

5--Danger of Substitutes:-
If a substitute product or service delivers a value proposition that is significantly different
from what the industry now offers, there is a high risk of it emerging. Hardware storage
drives can be replaced, for instance, by services like Dropbox and Google Drive.

Example:-
 Limited substitutes for CDN services

 Alternative technologies like peer-to-peer caching not widely adopted

 Low threat of substitutes

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