Skip to main content

Amazon Porters Five Forces

By




Porters Five Forces


Threat of new entrance is significantly high in Online retail which can be seen by Amazon’s efforts in capturing the Indian Market with significantly new players like Flipkart, Snapdeal, Paytm, etc. This has resulted in Amazon changing its policies exclusively for the Indian market. Amazon Overseas model operated on paid services and free services differentiation, but in India they were forced to follow the free model due to high competition. India, a growing market, has many online retail stores with differentiation.
Bargaining Power of the Buyer is significantly very high in Amazon’s case, the buyer will shift to the other online retails if the price and service offered do not match the buyer's expectations. With the presence of price comparison website, the buyer is directly influenced by the price factors. Growing coupon code websites pose a real challenge for Amazon to offer the service to match the current trends of the market. Social trends and ethnic behavior are also the bargaining powers of the online buyer, for example, scheme in Diwali, New Year, etc. This leads to additional investment for advertisement, not only online but offline like newspaper and other traditional media.

Power of Supplier is low to medium currently in the online retail market, mainly the online retailers set the rule which has to be followed by the suppliers. There has been a periodic growth in the rate of commissions by the online retail market, but the suppliers have very little options to oppose. Suppliers have also set the online dealer association but even that could not function due to the formation of multiple associations.
Threat of substitute product has been significantly high, buyers can easily switch to other online marketplaces and even the local store. This was identified by Amazon and other online retail stores and they have started to offer free delivery and even fast delivery in major cities that is within a couple of hours.
Labels:

Comments

  1. Mirunalini23 October 2018 at 15:58

    Thank you for sharing these worth able information to everyone.
    http://www.piqotech.com/FacilityManagementSystem.html
    http://www.piqotech.com/MaintenanceManagementSystem.html

    ReplyDelete

Post a Comment

Popular posts from this blog

Brand Architecture: of Google Vs Procter & Gamble

By
Brand architecture is the organizational structure and the names the brands within its portfolio.  Main types of the brand architecture are monolithic – here the corporate name is used in all products, endorsed in this all sub brands are linked to the main brand by visual or verbal means and free standing is where all the corporate brands is responsible mainly as umbrella company under which each product or service operate according to the target market. For example Google has recently restructured its business under Alphabet Corporate Brands.
Post a Comment
Read more

How to create Brand value with right content in Digital World ?

By
All real and worthwhile concepts, these words – perhaps because of their relative newness – tend to be used as blanket terms that describe a laundry list of things. For example, “content marketing” is often used interchangeably with “social media.” Here are nine common misconceptions to avoid in your content marketing. 1. Content marketing is easy and cheap The internet is gloriously free. Anyone can start a website or host a social media account. Perhaps, for this reason, some brands assume that content marketing is easy. After all, you don’t need a degree or any special training to create content, right? This view underestimates the skill involved in making content work well for the brand. Creating the right content requires deep knowledge of your brand, the digital landscape, and your audience, which is no easy task. Does your audience respond more to Facebook posts or videos? Email or blogs? Is your content actually converting? Keep this in mind when you start...
Post a Comment
Read more