MARKETING

ENVIRONMENTAL ANALYSIS

MICRO-LEVEL

Threats of New Entry

There always prevails the threat of new entry in the industry as market possesses enough growth
potential. Anyone entering in the industry with superior technology/performance and better
quality has a high chance of success, though the startup cost is low for e-commerce business. So,
Threat of new entry is so high.

Threat of Substitute Products:

Threat of substitute is low; some substitute of man and women’s clothing sector, bags, footwear,
jewelers etc. These are most demanding products for online business.

Bargaining Power of the Suppliers

Suppliers of this industry enjoy bargaining power. As most of the raw materials are of imported
and very few countries are supplying. And also, we are producing our product through third
party manufacturer, all of them enjoying huge bargaining power. The product quality the
suppliers provide are not differentiated that much from one another. If there were differentiation,
they would have charged a premium which in turn gives them opportunity to gain power in the
market.

Bargaining Power of the Buyers:

Bargaining power of the buyers are high, as there are so many competitors exit in the online or e-
commerce’s market and switching cost is also low. So, Buyers the customers will enjoy the
power of bargaining.

Competitive Rivalry:

There is some competitor of deligram e-commerce business. They are Ali express, daraz, and
many more.so the Competences in market is high. As a new brand it will take some time and will
be hard to compete with the competitors without proper strategic plan. As the competitors are
already doing well in the industry of Bangladesh and having their particular market share.
Porter’s Generic Value Chain

A strategy tool that analyzes internal firm activities is Value chain analysis. Here we have two
activities area 1) Supportive Activities and 2) Primary Activities.