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PORTERS 5 FORCES
MODEL
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RETAILING INDUSTRY

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THREAT OF NEW ENTRANTS

Independent retailers decreased.

Chain stores

Centralized buying competitive advantage

THREAT OF SUBSTITUTES

Deal with various products.

Chances of shifting is high.
POWER OF SUPPLIERS

Historically, exploit the relationship.

Less power
POWER OF BUYERS

Lower bargaining power

High quality products retailers honest

RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY

Cut throat Competition

Reduce frequent fliers, memberships, loyalty cards, etc..
TELECOMMUNICATION
INDUSTRY
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THREAT OF NEW ENTRANTS

Ownership of a telecom license

Finance
THREAT OF SUBSTITUTES

Cable TV direct lines, broadband services
POWER OF SUPPLIERS

Less power

Talented managers & engineers
POWER OF BUYERS

Increased choice high bargaining power

Switching costs individual & large business
customers.
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY

Usage of phone, competition is high

Price

Value added services

Profitability low
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Airline Industry
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THREAT OF NEW ENTRANTS

Saturated Market

Brand Name & Recognition


THREAT OF SUBSTITUTES

Time, Money

Personal References & convenience
POWER OF SUPPLIERS

Dominated Boeing & Airbus

Not much of difference.
POWER OF BUYERS

Low bargaining

Consider Service of airline too.

RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY

High competition

Cut throat competition

Low Profitability

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Pharma Industry
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THREAT OF NEW ENTRANTS
Very low barriers to entry

Government policies supportive

Entry price regulation exists

Economies of scale exist

Proprietary technology

Product existence

THREATS OF SUBSTITUTES
No substitutes for the medicines

Biotechnology is a threat to synthetic pharma products

POWER OF SUPPLIERS
Volume benefits occur

Inputs standard, available locally

Numerous suppliers-switching cost low

Suppliers can go for forward integration

Raw material cost constitute more than 50% of the total
expenses
POWER OF BUYERS
End consumers do not have bargaining power

Brand identity exists but is in the hands of Influencer (Doctors)

Price Sensitivity is less

Highly fragmented market, so buyer concentration v/s industry
is low
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY
Industry Competition

Highly competitive.

Top five players have mere 18% market share

18% market share

Lower fixed cost and high working capital
Indian Automobile Industry
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THREAT OF NEW ENTRANTS

Substantial entry

New company requires high capital.

Achieving minimum efficient scale is prohibitive

Enter through strategic partnership, buying, merging

Domestic market works well locally than globally

THREAT OF SUBSTITUTES

Fairly mild

Other forms of transportation available
POWER OF SUPPLIERS

the power axis is tipped in industry

Powerful buyers dictate their terms to supplier
POWER OF BUYERS

The power axis is tipped in the consumers favor

Low switching costs from among competing brands.


RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY

Intense due to the entry of foreign companies

Rivalry - high with any product being matched in a few months by the competitors

Technical capabilities

Collaboration with international players
THANK YOU
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