Entrepreneurial Marketing

Assignment 3

Topic: Porter’s Five Forces of E-Retail

Submitted by:

Hassan Shahbaz (L1F18BBAM0059)

Submitted to:

Syed Shujaat Ali Shah

Date:
7th- Jan- 2022

1
MedVerse is an online retailer store that help the community by delivering prescribed
medicine at doorstep. MedVerse goal is to provide convenient, quick and low-cost service to
Lahore community by delivering medicines to people, where they need them. Knowing who
your competition is and how their products, services and marketing strategies affect you is
very critical to your survival. Whether you are a Fortune 500 company or a small, online
business, competition has a direct influence on your success.
1. Competitive rivalry
Competitive rivalry is a measure of the extent of competition among existing medical firms in
Lahore. Intense rivalry can limit profits and lead to competitive moves including price
cutting, increased advertising expenditures, or spending on service/product improvements
and innovation after this online business MedVerse start-up.
2. The bargaining power of suppliers
The Bargaining Power of Suppliers, one of the forces in Porter's Five Forces Industry
Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the
pressure that suppliers can put on MedVerse by raising their prices, lowering their quality, or
reducing the availability of their products.
3. The bargaining power of customers
The Bargaining Power of Buyers, one of the forces in Porter's Five Forces Industry Analysis
framework, refers to the pressure that customers/consumers can put on this online business to
get them to provide higher quality products, better customer service, and lower prices.
4. The threat of new entrants
In Porters five forces, threat of new entrants refers to the threat new competitors pose to
existing competitors in an industry. Therefore, a profitable industry will attract more
competitors looking to achieve profits.
5. The threat of substitute products or services
Companies are concerned that substitute products or services may displace their own. The
threat of substitution is high when rivals, or companies outside the industry, offer more
attractive or lower cost products. Buyers then have the opportunity to make a performance
trade-off. The cost of switching is also a factor. If it is high, the threat of substitution is low in
case of MedVerse.
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