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

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

Responsive design vs. dedicated mobile landing pages

By
To provide a cleaner user experience (without the pinch-to-zoom, scrolling-all-over, eye-squinting madness), many marketers have turned to a technique called responsive design. Responsive design essentially allows you to have one page that accommodates all device types and screen sizes, from mobile to tablet to desktop and beyond. Depending on the ways you intend to interact with your user, this can save you time and development resources and help you maintain a cohesive design language and brand identity. While responsive design is all the rage in web design circles these days, it’s not always the best solution for campaign-specific landing pages. To illustrate this point, let’s ask a question: Will users book European travel from their phones? While we should always test assumptions like these, logic tells us this is not very likely. So if device context tells us the user is landing on the page from mobile, what should we do? We may want to build unique mobil...
117 comments
Read more

7S MODEL Amazon , Flipkart , Paytm

By
7S MODEL Let’s talk about the hard element first Strategy is the hardest segment where the survival of the company may depend, an example other than online portal would be the Epson Vs HP printers, they have both stood the time of the decade with different technology in there printing head, Epson relying on a technology which is much more expensive than HP and they were able to stand firm with their strategy and currently they are able to compete even with the price difference. eBay and Amazon. eBay was started as an auction website and over the years the concept of auction has lost its touch and now eBay is both auction site and shopping website and Amazon has given them tough competition over the years and in few countries like India, eBay had to wind up its operation due to different model of operation from the market and finally Indian operation was sold to Flipkart. Structure: eBay has more than 12000 employees and 12 directors, each manage different geog...
12 comments
Read more

The e-commerce industry is expected to grow to US$188 Billion by 2025.

By
In the past few years, e-commerce industries have experienced massive growth, due to the penetration of Smartphones and Indian e-commerce  industry is expected to grow to US$188 Billion by 2025. Now, people with limited access to a premium brand in teir-2 and tier 3 cities can easily order via e-commerce. Before now, nobody ever thought groceries would be traded online. Thanks to the Metro culture that resulted in the success of Grofers, Bigbasket, etc. Political Hurdles for e-commerce have been growing recently due to the price war with traditional businesses. Even for foreign players, the red tape in Asia is a major challenge. China has major restrictions for Google, Amazon, etc. The EU has been targeting Google, Amazon, etc. for so many political reasons. Political stability is the major contributor to economic stability and growth. Economic Factors These factors have a vital influence on the market condition. Economic factors are directly related to the purch...
1 comment
Read more