Poters Five Forces Model E-Commerce - 1348 Words

FIVE COMPETITIVE FORCES OF INDUSTRY Michael Porter has postulated that the intensity of competition in an industry is determined by its underlying economic structure1. And he further contends as we saw above, that the industry structure is shaped by five basic competitive forces: the threat of new entrances into the industry, the bargaining power of suppliers to the industry, the threat of substitute products or services, the bargaining power of customers or buyers, and the Rivalry among Existing Firms. The figure shows these competitive forces. The threat of substitute products The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high†¦show more content†¦The analysis will be concentrated only in the buying and selling of products in the internet. In this industry are present the following firms: Amazon.com, Yahoo.com, MSN, eBay, FNAC, and others. In this industry is being sold products such as DVD’s, CD’s, PC’s, books, phones, mobiles, perfumes, bicycles, furniture, households articles, watch’s, academic articles, clothes (for men, woman, and children), etc. The amount of trade conducted electronically has grown extraordinarily since the spread of the Internet. A wide variety of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction s lifecycle, although it can encompass a wider range of technologies such as e-mail as well. A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web.Show MoreRelatedPoters Five Forces Model in E-Commerce Essay1312 Words   |  6 PagesFIVE COMPETITIVE FORCES OF INDUSTRY Michael Porter has postulated that the intensity of competition in an industry is determined by its underlying economic structure1. And he further contends as we saw above, that the industry structure is shaped by five basic competitive forces: the threat of new entrances into the industry, the bargaining power of suppliers to the industry, the threat of substitute products or services, the bargaining power of customers or buyers, and the Rivalry among ExistingRead MoreRole of Information Systems in Small Scale ‘Ready to Eat’ Food Business3150 Words   |  13 Pagescould be used to support ‘Ready to Eat’ 2 2. (a) Business Functions and the role of Information systems in a business 3 (b) Need of transaction Processing system (TPS) in a Business: 4 3. (a) Poter’s Competitive Forces Model: 4 (b) Role of Information System to counteract the competitive forces: 5 4. (a) Information Requirements of ‘Ready to Eat’ 6 (b) Business function to be computerised 6 5). Use of computer networks to improve collaboration and among key stakeholders 7 6. The managementRead MoreBusiness Analysis : Qantas And Jetstar Essay2646 Words   |  11 Pagescorporate strategy : Marketing planning and marketing audit by Qantas would help this airline in getting the information have a better understanding of the demands of the customers, market demand, analysis of competitors in the market, dealers and other forces present in the international market. A formal marketing planning of the Qantas airline will help it in forecasting the market situations that would help it in developing diversified strategies for the future. The information that are obtained throughRead MoreBsnl Project3862 Words   |  16 PagesMUNLINA SATPATHY (ROLL NO.:-11202137) Contents * Introduction * Market Position Of BSNL * Competitors Of BSNL * Objective Of BSNL * Marketing Strategy Of BSNL * Application Of Porter’s Generic Strategy * Porter’s Five Forces Related To BSNL * SWOT Analysis Of BSNL * BCG Matrix Of BSNL * Value Chain Delivery * Customer Satisfaction * Business Environment * Brand Equity * Market Research Questionnaire Introduction Bharat Sanchar Nigam