One of the most crucial factors concerning Directv, in relation to Michael Porter's five forces model, is the rivalry that exists in the industry. Dish and Directv are by far the largest digital cable providers who are constantly competing to gain a larger market share. Although there are new companies emerging on the scene, such as U-Verse, none are considered rivals of Directv just yet. The fact that Directv and Dish have such a large market share of digital cable broadcasting makes the barriers to entry extremely difficult for new companies to emerge. In light of this, Directv has a metaphorical shield that protects their share in the marketplace. The threat of entry keeps profitability high for Directv and Dish while making their rivalry more intense. Until digital broadcasting companies can develop new technologies, strategies, or a better business model it seems clear that the likes of Directv and Dish will continue to dominate the market.
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