Amazon Prime video is an internet on-demand video service that was developed and is owned by Amazon. It offers films and television shows for purchase and rent (“Amazon.com Help: What is Prime Video?”, n.d.). People can access its content through subscriptions, and one can also buy content from this site. In some places across the globe, the service offers Amazon channels where viewers can subscribe to their content and access them through these means. This paper, therefore, wants to analyze the influence that the bargaining power of suppliers has in this service.
In today’s environment, the bargaining power of Amazon Prime Video suppliers is medium. With the rise of new platforms that offer the same service as Amazon such as eBay and Walmart, there is increased competition and suppliers can decide to use a different platform to sell their content (Smith, 2015). However, the large number of suppliers and the well established Amazon brand has helped it maintain a medium bargaining power.
According to Porter’s forces of competitive analysis, the bargaining power of suppliers is also influenced by the uniqueness of a service. In the next three years, the bargaining power of suppliers will be expected to be high. This is because of the rise of new competitors in the market and people are now embracing alternatives such as Netflix and other sites where they can access the same content.
In the next three to five years the company’s suppliers are expected to look for cheaper platforms to offer their supplies. This will be because they will have a variety of platforms to choose from and will go for the most affordable platform.
Amazon Prime Video will, therefore, be expected to introduce a unique twist to its services to ensure that their platform is the preferred on by the suppliers. It can also decide to reduce the prices to attract more customers who will, in turn, draw more suppliers to them.
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