B) Porter Five forces

1. Competitive Rivalry (negative)

A) Number and sizes of competitors

The numbers of competitors has become a big issue for our company because in the same
business segment arise many of same categories company. Therefore, competitive advantage
might be affected since more and more company is take part in to this business segment. For
example, our biggest competitor is YouTube which is a platform to put a lot of learning and
practicing video. Although YouTube have high level of reputation and users compare with our
company. Our technology and resource also might not better than YouTube but we will put more
effort to surpass the competitor.

B) Costs and quality of service

Nowadays, people has emphasize on the level of price. For our company which is more pay
attention on quality and it will cause face disadvantage in the market. Nevertheless, our company
has care about the quality so we recruit many professional and expertise person to provide the
best and top quality service to our customer.

Overall, Taitanic faces strong rivalry. This has negative effect to the company.

2. Threat of New Entrants (positive)

A) Brand names are not well-known

Our company has just recently startup for business, therefore have faced some common problem
which is not familiar and well-known in the Malaysia. But our company has gone to many of
college and university to give a speech and talk about our service and product which can promote
our company and increase image and reputation.

B) Proprietary knowledge

The idea and concept of company have been registered and applied for patent in Malaysia. If any
other company has used the same concept and idea to do business, they might be suing by court
under Malaysia law. Many customers have satisfied and consume our service because of unique
and creativity of our concept and idea which is effectively and affectively to help our customers
solve their problem.

Overall, threats of new entrants are weak to Taitanic due to high entry barriers. This has positive
effect to the company.

3. Threat of Substitute Products (positive)

A) Invention of technology

In this business segment, our company has the biggest challenge which is Internet. Nowadays,
people like to use the internet to find and solve their solution. In this situation may cause them
misleading by false information. Some solution may not suitable for solve their problem actually.
For example, people like to watch YouTube and find some fake information to figure out their
questions. Our company was just startup so it may not attract people to look for and approach our
website or walk in to our company to get solution. Other than that, Internet is costly free of
charge and company need to be charge of fees. This is also one of the reasons that people prefer
Internet to get resource.

B) Service performance

Company’s competitors have different level of quality and reliability and the level of price is a
big different also. For the customers who care about the quality of service, they will remain and
keep going to support and consume our company service. However, some customers might too
focus on the price; it will go for other companies. Our company will keep create and develop
more new service to compete with other competitors to attract the loyalty consumers.

Overall, threats of substitutes are weak to Taitanic. This has positive effect to the company.

4) Bargaining Power of Suppliers (positive)

A) Good relationship with suppliers

Our company has to get lower price with good quality products which are processer of computer
and others. It because the suppliers have a good relationship with our company and our company
was different between other competitors which we are always paid the payment on time without
excuses. The good behavior which obtain by our company has been appreciate by suppliers
because not all the company can do this because company’s liability is huge.

B) Capability of self-manufacture

Company has produced they own products such as create a new technology. The media and
entertainment, geospatial, video surveillance are the expertise of the company. Company has
improved all of these products with their technology.

Overall, Taitanic bargaining power of suppliers is weak. This has positive effect to the company.

5) Bargaining Power of Buyers (Positive)

A) Brand name and reputation

Our company has recruit all professional and expertise instructors to provide the services. The
consumers will more confidence and trust to our brand name and quality. Our professional and
expertise instructors have been go to Japanese for training and practicing which awarded by the
certificate of education. Our requirement for recruitment of instructors must be at least three
different languages and Master graduated. The quality and standard of the skill and tutoring have
been guarantee by government which also have awarded by ministry of education.

B) Customer service and attitude

Company has highly and extremely care and pay attention about the service and attitude that
received by customers. Every single customer would serve by same level and standard quality of
service within short period. If any customers want to receive service without waiting, it can call
for our service center or website for booking. Some customers might walk in to our company; we
also would not allow the customers waiting too long. Arrangement and preparation are very
important for service industry. Other than that, employee’s attitude also very important and
essential for the customers and the entire employee who is serve customer have been strict
training. A good attitude can affect the customer weather will continue to consume at the same
company again.

Overall, Taitanic bargaining power of buyers is weak. This has positive effect to the company.
Conclusion: The five competitive forces are the competition in the Taitanic and the competitive
rivalry can affect the growth of Taitanic and cause changes in the company and competitive
condition.

Competitive pressure Effects

Competitive Rivalry Negative
Threat of New Entrants Positive
Threat of Substitute Products Positive
Bargaining power of Supplier Positive
Bargaining Power of Buyer Positive
Overall, the competitive brought major positive effect to Taitanic.

1.2.2industry attractiveness

Our company is more relied to technology rather than traditional ways to teach and guide using
the paperwork to the people. Nowadays, technology is trend of apply in business so our company
also follow and up to date which using the Internet to engage our business. We prefer the online
learning system which can learn and sharing their problem to us through the internet. It can save
time and more effectively. For example, we can reply their questions within several minutes with
24 hours chatting with our service center.

Other than that, company has provided a service which is corporate with other social media apps
to control someone who has addicted to social media apps. The social media apps may limit their
usage per day. Many parents have interest and support our company. According to the survey the
teenagers have spent at least four hours a day on their social media apps. It may cause their
health and mental problem on their growing process.

1.2.3 Industry growth rate.

Growth rate refers to the percentage change in a specific period of time for a specific variable,
and is given some context. For investors, growth rates usually represent a company's revenue,
profits, dividends, and even macro concepts, growing compound annual rates such as gross
domestic product (GDP) and retail sales. Forward-looking or trailing growth rate is expected to
be two common analyses for growth.

-成长多少

1.3 competitor analysis

1.3.2direct and substitutes competition

Product Price: There are more risky of losing customers which is switching costs when the
substitutes are prices affordable than our company. In this situation, company has to find solution
to attract new and existing customers. In addition, any adjustment of the price of service may
directly affect the amount of customers.

Product Quality: Quality is very important for every customer; therefore if the substitute
product is quietly higher or lower with our company the consumers will take consideration and
compare the difference. These may occur the situation that some customers switch over to our
competitor.