* Current Situation
Actually, the company is well positioned in the consumer’s mind and in the market because of its good strategies over the world. This company has evolved because at the beginning it was a company focus in mapping, printing and location information businesses, but then with the technology evolution they improved and adapted its products to the new market tendencies.
* Key Question
* How MapQuest could maintain its position in the industry and how it could increase its cash flow?
* FIVE PORTER FORCES’ ANALYSIS
* Bargaining Power Buyers
The power of buyers is high because this company depends of the businesses and consumers’ demand. This is because they can decide where to buy according to the perception that they have of a company. * Bargaining Power of Suppliers
The power of suppliers is elevated because MapQuest granted licenses to an important number of enterprises about primary geographic data, but they aren’t exclusive and the contractual arrangements were in short time. Besides they gave a limited number of sources. * Threats of new entrants
In this industry the threats of new entrants are high due to the profitability that offers this kind of business and the new competitors can enter easily. In addition, new offerings were rapidly emerging because there are few barriers of entry in the market and there are low costs for the internet access. * Threats of Substitutes
In this point the threat of substitute products is low because of the high quality that they offer and because they are well positioned in the market.
The rivalry between MapQuest and its competitors is moderate because there are other companies that offer the same services and products but MapQuest continue being the leading company in this market.
* TOWS MATRIX
| Strengths * Brand image * Good quality * Good Financial position * Innovation * Good participation in the...