Porter's Five Forces Analysis: Arizona Repertory Theatr
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Porter's Five Forces Analysis is an effective way to analyze the competition and challenges that a business faces in its field of operations. It utilizes five different forces to determine the competitiveness of a given industry. The five forces are: Threat of new entrants, Threat of substitute products or services, Bargaining power of customers, and Intensity of competitive rivalry. These factors in conjunction determine the competitiveness level of a certain industry. If competition is high, the opportunities to make a profit in that industry are low. If competition is low on the other hand, the industry can provide good profit making opportunities to businesses. The Porter's Five Forces Analysis can be applied to the Arizona Repertory Theatre to see what unique challenges it must deal with in the theatre and performing arts industry.
An analysis of Arizona Repertory…show more content… Therefore, an analysis of how each of the five forces affects the Arizona Repertory Theatre is called for. The first factor, the threat of new entrants, is not a huge worry AZ Rep Theatre. The theatre and performing arts industry has a large barrier to entry, as a large degree of infrastructure and capital is needed to create a new theatre capable of hosting performances. The next factor, threat of substitute products or services, is a much bigger factor for AZ Rep Theatres. There are a proliferation of competing theaters in Tucson, the Rialto, Gaslights, and Centennial Hall theatres are but a few of the many theatres competing with Arizona Repertory Theatre. Because there is so much competition, profit potential decreases. The third factor, bargaining power of customers. This factor does not affect AZ Rep quite as much, simply because customers of theatres do not have too much bargaining power. They can't determine the dates of the plays or the