Wednesday, July 17, 2019
Porters 5 forces for Flipkart
Threat of New Entrants intentness seems to have truly high potential that is at its nascent stage. Lots of scope of egression in the futureM whatsoever teensy players might enter to look the foodstuffHigh capital investment is required as it is solace in the nascent stage. Would non be some(prenominal) of a deterrent as venture capitalists atomic number 18 interested in investing, as they see a future in it.Flipkart is already an established its pock name and network across the nation. Hence, it may not be affected by the entry of small players in its market domainFlipkart is slowly moving up. Although, different players are learning from Flipkarts mistakes and trying to do better. Since the industry is emerging profits cannot be achieved. Determinants of supplier Power For Suppliers (product manufacturers), e-commerce is another platform to sell their products, without any differentiation Hence, e-commerce companies have little amount of negotiate power, including Fi lpkart.There is an exception in case of popular products, as company has circle of alternatives. Their switching cost is low, if in that respect is no contact.Not all suppliers may have the major power of willingness to forward integrate, as it is highly risky market.Price divergence is very(prenominal) much possible.As Flipkart is an inventory- based business model, they taint in bulk from their suppliers.Treating suppliers as partners would be very beneficial for Flipkart and its suppliers.Rivalry amongst existing firms Flipkart is having a tight time as it is competing with its competitors in e-commerce as well as retail stores.Flipkart has less competitors of the equivalent size, simply many in smaller size.Flipkart has lot of competitors now , but not as coarse as them, small in size but large in number.Incentive to fight is low, as the market is big enough for everyone to grow but thither is no profit margin.Exit costs are very high, as Flipkart has an Inventory ba sed business model.
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