Well, you will be surprised to learn that sports memorabilia and sports autograph are big businesses. You can call it an industry in itself. How much value do consumers receive? We are going to find out.
Five forces model
To understand the value received by the consumers, we are going to take a look at the Five Forces model. It was introduced by Michael Porter. This model makes it easy for companies to understand the nature of the competition. When you are able to assess the competition, it will be easier for you to deal with it. The first force you need to get familiar with is ‘Barriers to Entry.’ What is the significance of it? Well, it will give you a very good idea as what you are supposed to do to enter into the industry. First and foremost, companies are required to have proper financial funding. Otherwise, you will not be able to obtain sports memorabilia. Also, it is important to have contracts with athletes to make a presence in the industry. And for all these, you need proper financial backing. So, if you have not made a progress in that one, you need to get started on this right away. Also, as a company, you are supposed to have a reputation in the industry if you are to have some chance. If you wish to frame your memorabilia, then you can visit the local frame shops Melbourne.
Level of rivalry
Well, the second force is named ‘level of rivalry.’ Let’s learn more about it. What do you mean by this? We are simply referring to the competition in the industry. Since there are so many companies in the business already, you will have to deal with fierce competition. Low switching costs and high fixed costs are things that you are supposed to deal with once you become part of the industry. How do you make some profit? Well, you can employ plenty of techniques to get there. You can go for horizontal and vertical distribution. Product differentiation is another thing that you can do. You can also try to change prices. We would also recommend exploiting relationships with your suppliers. You can get custom mirrors Melbourne to frame your memorabilia.
Threat of substitutes
Well, the name of the third force is ‘threat of substitutes.’ Let’s learn more about it. We are talking about consumers opting for something else in place of a memorabilia or autograph. We can take the example of going to sports event to understand it better. Or they can utilize the money to buy something else. The fourth and fifth forces are named ‘power of buyers’ and ‘power of suppliers.’ It is really important to understand these concepts before you try to be a part of the industry.