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Porters 5 Forces and Domain Name Value One of the methodologies ...
Source: domainmart.com
Topic: Five Forces Analysis
Sort Desciption: Porters 5 Forces And Domain Name Value. 2. Figure 1: Porter's Five Forces. 1. Intensity of Rivalry among Existing Firms. In the standard industry analysis ...
Content Inside: Porters 5 Forces and Domain Name Value One of the methodologies used in domain name valuations is the discounted cash flow (DCF) approach. This approach requires the estimates of future cash flows. A strategic modeling approach must be adopted to analyze the demand for the domain name. I will then take a closer look at the Porters Five Forces as a tool to assess the various value drivers in domain name valuations. I assume some familiarity with the frameworks. Strategy Framework A widely used methodology to analyze the attractiveness of an industry is Porters Five Forces framework. The fist step in implementing a strategy framework is to define the relevant market. The boundaries of the market are not always well marked which makes the task more challenging yet insightful and thought provoking as to what the relevant competitive forces are. The attractiveness of an industry is measured in terms of excess returns not just industry growth rates. For a domain name the attractiveness is measured in terms of additional shareholder value the acquisition of the domain name would create. The growth rate in the additional CFs in turn depends on future growth rate of Internet use sources of traffic industry growth rate and infla ...
