Accredited
Registrars
(See Exhibit 3 for a standard industry attractiveness
worksheet)
Threat of New Entrants
In order to receive an ICANN accreditation, the company
must go through a thorough inspection process (please see http://www.icann.org/registrars/accreditation.htm#HowtoBecome
for more details), pay for licensing and obtain an assurance of performance
($100,000 US). This represents a substantial barrier to entry for most
affiliate registrars or other companies.
Established accredited registrars do not have cost
advantage over new entrants in terms of payments to InterNIC. However,
several registrars have created strong brand names, which provide them with
substantial advantage (i.e. Network Solutions and Register.com).
Overall Rating: Moderate (please see part 2 of Exhibit
3)
Bargaining Power of Buyers
Absolutely the same as with affiliate domain
registrars.
Overall Rating: Moderately Negative (please see part 2
of Exhibit 3)
Threat of New Products or Services
Absolutely the same as with affiliate domain
registrars. However, the effect of the introduction of new domain name
extensions will be very positive. Many ".com" holders will secure their
names with alternative extensions and result in a substantial revenue stream
for registrars.
Overall Rating: Very Positive (please see part 2 of
Exhibit 3)
Power of Suppliers
Even though the supply of domain names is controlled
and regulated by ICANN, virtually no unfair competitive advantage can be
gained on the supply side. ICANN does not give preference to any accredited
registrar and should follow its own bylaws and standardized procedures for
decision making.
Overall Rating: Moderate (please see part 2 of Exhibit
3)
Levels of Rivalry
The level of competition among accredited registrars is
much higher than among their affiliates. This is primarily due to the
smaller number of them and the need to expand price sensitive affiliate
bases.
Overall Rating: Very Positive (please see part 2 of
Exhibit 3)
Overall Industry Outlook: Positive
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