Every actor in the film industry has been labeled as strong, average or weak. Strong forces are perceived as threats to the firm due to influences which therefore limit the firm's ability to raise prices. On the other hand, weak actors are seen as opportunities. They have insignificant bargaining power, so the company can raise prices or cut costs to preserve the surplus that the company brings in. A.1) Potential new entrants (threat of new entrants): high2) Threat of substitutes: low3) Rivalry among competitors: High4) Suppliers (supplier power): Low5) Buyers (buyer power): StrongB. Five strengths of the frameworkC.Threat of substitutes: medium. It is well known that it costs less to rent or stream a movie than to buy a DVD. Additionally, consumers can easily choose to switch from one substitute to another because of this latitude, making it very attractive. The obligation to return a film or stock up on DVDs after purchasing it is almost obsolete. Additionally, consumers are realizing that the choice of purchasing a DVD is more expensive than renting or streaming and the lack of disposable income has pushed them in that direction instead of purchasing them. Buyer power: medium to high. The reason consumers have switched from purchasing DVDs to renting or streaming is due to the reasonably low prices that allow them to decide whether a particular brand or distributor would fit their pockets. However, it all comes down to price, availability and accessibility. Supplier power: low to medium. There is a direct interdependence between suppliers and the rental industry. However, suppliers cannot influence or intimidate the other party because they need them...... middle of paper ...... more on how much they spend and how different you are of competition. Here's a summary of my recommendations: Although consumers really like unlimited streaming for a monthly subscription, the price is still too high and should be reduced to $2.99. Therefore, consumers would think twice before going to the rental kiosk for their movies. The new slogan would be “Supersize your movie rental” for a dollar more than the competition you can watch unlimited movies in your own pajamas. Additionally, we should release the new versions before our competitors even get them. Finally, we should expand into the hotel industry by offering our services from the comfort of your hotel room. I think the name already says it all and we just need to win their pockets by implementing the above recommendations. I hope to hear from you soon. Have a blessed day!