The threat of substitute products and services:
At the minute there is an increasing amount of digital download sites emerging on the internet. This is a major threat to the trackitdown.net site. Trackitdown.net was one of the first digital download sites to emerge onto the internet and instantly became a huge success, now with more and more appearing this could have a big impact on the amount of sales from the site as customers can make purchases from other sites for cheaper. This year trackitdown.net expanded it sites from selling only music tracks to DJ equipment and clothing. This will be an advantage to the site as no other digital download site is currently selling those items at the minute.
The threat of the entry of new competitors:
The threat of new competitors would be a problem to the trackitdown.net. Nowadays it is a lot easier to set up an online business so therefore a lot of different digital download web sites are appearing. Trackitdown.net will continue to provide customers with exclusively tracks, meaning that the site will sell the track before it is released on other sites. Currently at the minute the only other site to offer this is www.beatport.com. If other new competitors get the rights to sell tracks exclusively then this could have great impact on the web site sales.
The intensity of competitive rivalry:
There is a lot of competitive rivalry on the internet between digital download sites. A lot of sites will try to gain more business over other sites by offering tracks at a lower price. Trackitdown.net do offer there tracks at a competitive rate but I have seen sites that have been offering the same tracks cheaper. This can be damaging for the site as customers may track business elsewhere and also potential customers could be put off. Trackitdown.net do offer some savings on bundle packages, this type of offer could attract customers who will be purchasing more than one track.
The bargaining power of customers/buyers:
Customers purchasing on trackitdown.net don’t have much power to bargain with prices of tracks as they are priced at a fixed rate. The same goes for the equipment and clothes. If trackitdown.net realises that its losing a lot of customers due to similar sites selling at a more competitive rate then they may be forced to lower there prices. This would be a way of the buyer bargaining with the sites current price.
The bargaining power of suppliers:
With the way the music industry is now it would be very hard for trackitdown.net or any digital download site to bargain with the supplier. In this case the supplier is the record label, the record label is there to make as much money possible of the sale of the record therefore the track will be sold as a set price to trackitdown.net. It would be different with the DJ equipment and clothing that the site sells as they may be able to bargain with supplier for a cheaper price when they buy stock in bulk.
