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PORTERS FIVE FORCE MODEL
ON INDIAN E-SUPPLY CHAIN
MANAGEMENT Presented By,
Aman Sati
Aiyesha.A
Lakshay Shivani
Moumita Bhattacharjee and
Shubham Raj
2nd sem – IB
INTRODUCTION
->The Indian online retail market, major e-tailing firms like Flipkart, Snapdeal and
Amazon have adopted asset light model and hence moved away inventory based
model to marketplace model. Private equity players and venture capital firms have
shown their faith in the growth of online retail in India and it is evident with Flipkart
receiving eight rounds of funding over the last seven years.
->But with immense growth opportunities, the online retail market faces the
challenges in terms of logistics services as the key to online retail is to deliver
products on time. Logistics and infrastructure, huge maintenance cost of warehouses,
costly middlemen, and error in online payments are a few of the bottlenecks in the
growth of the industry
OBJECTIVES
• To understand the basic functions of Supply chain Management.
• To know about the potential of E-tailing in India.
• To know about the threats and competition that affects India’s E-tailing.
• To understand from the porters five force model and to analyze the E-tailing and E-
SCM in India.
DEFINITIONS
What is E-SCM?
Electronic Supply Chain Management (e-SCM) is an optimization of business
processes and business value in every corner of the extended enterprise - right from
your supplier's supplier to your customer's customer.
What is E-tailing?
E-tailing or e-retailing refers to the selling of retail goods electronically over the
Internet. The term is a short form for "electronic retailing", and surfaced in the 1990s
for being frequently used over the Internet. The term is an inevitable addition to other
similar terms such as e-business, e-mail, and e- commerce. E-tailing usually refers to
the business-to-consumer (B2C) transactions.
THREE TYPES OF E-TAILING
Click – The businesses that operate only through the online channel fall into this
category. Prominent examples in this category include: Dell, Amazon.com and e-Bay
Click and Brick– The businesses that use both the online as well as the offline
channel fall into this category.
Brick and Mortar – This is the conventional mode of retailing. The businesses that
do not use the latest retailing channels and still rely upon the conventional mode
belong to this category
Rivalry
among
existing
competitors
Threat of
new
Entrants
Bargaining
power of
Buyers
Threat of
Substitute
Bargaining
power of
suppliers
PORTERS FIVE FORCE MODEL ON E-
TAILING
BARGAINING POWER OF THE
SUPPLIERS
The power of the suppliers gets higher when the e-tailers (electronic retailers) have
less alternatives for the preparation of them. However, many E-SCM have numerous
options of suppliers. E-SCM, on the one hand, can give E-tailers (electronic retailers)
the access to different suppliers and on the other hand, E-SCM tends to provide equal
access to e-tailers (electronic retailers) for all suppliers, and creates a different channel
for suppliers to achieve etailers (electronic retailers)
-> Dependency - low
THREAT OF SUBSTITUTES
The threat of alternative products or services in the electronic market is high, because
there are a large number of alternatives suppliers and E-tailers(electronic retailers).
The larger number and alternative of closer products increase the etailers trends
(electronic retailers) to switch between suppliers.
-> Reduces cost of switch over
THREATS OF NEW ENTRANTS
E-SCM reduces the entry barriers and makes market entry easier. Increase in suppliers
makes the transmission of power to e -tailers (electronic retailers). There is no
obstacle for entrance of providers to supply chain e-tailing. So, because of the
convenience of the increasing number of e-tailers suppliers (electronic retailers), the
level of competition between them increases at any time. E-SCM lowers the costs of
suppliers' switching. E-SCM lowers difference among competitors. Keeping dedicated
E-SCM applications for the newcomers is difficult.
->Threat of new entrants - High
BARGAINING POWER OF E-TAILERS
The power of E-tailers (electronic retailers) is more than suppliers once that the e-
tailers (electronic retailers) have more choices than the suppliers. In addition, E-tailers
(electronic retailers) may lower themselves to work easily with suppliers.
-> Bargaining power - High
COMPETITION FROM RIVALRY
The intensity of competition's intensity is one of the major factors for the
competitiveness of the E-Tailing industry. There are many electronic stores about the
same size and with a small distinction between products and services. Due to the lack
of any obstacle to market entry and the presence of a large number of suppliers and
E-tailers (electronic retailers), there is a higher level of competition among them as
well as with each other. E-SCM generally makes the industry more efficient.
-> Competition from rivalry - High
Porters Five Force Model on E-tailing and E-SCM
Porters Five Force Model on E-tailing and E-SCM
FUTURE OF INDIAN SUPPLY CHAIN
MANAGEMENT
SIX BIG TRENDS THAT CHANGE THE SCM INDUSTRY
 More Mega Cities
 Proliferation of segments
 Improved Supply chain Infrastructure
 Better Regulatory Climate
 Stronger Global Connect
Affordable and Accessible Technology
MEGA CITIES
MULTI-TIER NETWORK DESIGN
PROLIFERATION OF SEGMENTS
CUSTOMIZATION ACROSS THE VALUE CHAIN
IMPROVED SUPPLY CHAIN INFRASTRUCTURE
BETTER REGULATORY CLIMATE
GST Fiscal Incentives
Sustainability
/Activism
Changing
regulations
STRONGER GLOBAL CONNECT
CHALLENGES THAT WILL CONTINUE
IN 2025
REFERENCES
• Supply chain 2025 – trends and implications in India By A.T.Kearney
• Analysis of the effect of e-supply chain management (e-scm) on retail industry By
Zeinab Zarat ,Dakhely Parast, Saeed Vanaki and Farsad Abdar
Thank you

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Porters Five Force Model on E-tailing and E-SCM

  • 1. PORTERS FIVE FORCE MODEL ON INDIAN E-SUPPLY CHAIN MANAGEMENT Presented By, Aman Sati Aiyesha.A Lakshay Shivani Moumita Bhattacharjee and Shubham Raj 2nd sem – IB
  • 2. INTRODUCTION ->The Indian online retail market, major e-tailing firms like Flipkart, Snapdeal and Amazon have adopted asset light model and hence moved away inventory based model to marketplace model. Private equity players and venture capital firms have shown their faith in the growth of online retail in India and it is evident with Flipkart receiving eight rounds of funding over the last seven years. ->But with immense growth opportunities, the online retail market faces the challenges in terms of logistics services as the key to online retail is to deliver products on time. Logistics and infrastructure, huge maintenance cost of warehouses, costly middlemen, and error in online payments are a few of the bottlenecks in the growth of the industry
  • 3. OBJECTIVES • To understand the basic functions of Supply chain Management. • To know about the potential of E-tailing in India. • To know about the threats and competition that affects India’s E-tailing. • To understand from the porters five force model and to analyze the E-tailing and E- SCM in India.
  • 4. DEFINITIONS What is E-SCM? Electronic Supply Chain Management (e-SCM) is an optimization of business processes and business value in every corner of the extended enterprise - right from your supplier's supplier to your customer's customer. What is E-tailing? E-tailing or e-retailing refers to the selling of retail goods electronically over the Internet. The term is a short form for "electronic retailing", and surfaced in the 1990s for being frequently used over the Internet. The term is an inevitable addition to other similar terms such as e-business, e-mail, and e- commerce. E-tailing usually refers to the business-to-consumer (B2C) transactions.
  • 5. THREE TYPES OF E-TAILING Click – The businesses that operate only through the online channel fall into this category. Prominent examples in this category include: Dell, Amazon.com and e-Bay Click and Brick– The businesses that use both the online as well as the offline channel fall into this category. Brick and Mortar – This is the conventional mode of retailing. The businesses that do not use the latest retailing channels and still rely upon the conventional mode belong to this category
  • 7. PORTERS FIVE FORCE MODEL ON E- TAILING
  • 8. BARGAINING POWER OF THE SUPPLIERS The power of the suppliers gets higher when the e-tailers (electronic retailers) have less alternatives for the preparation of them. However, many E-SCM have numerous options of suppliers. E-SCM, on the one hand, can give E-tailers (electronic retailers) the access to different suppliers and on the other hand, E-SCM tends to provide equal access to e-tailers (electronic retailers) for all suppliers, and creates a different channel for suppliers to achieve etailers (electronic retailers) -> Dependency - low
  • 9. THREAT OF SUBSTITUTES The threat of alternative products or services in the electronic market is high, because there are a large number of alternatives suppliers and E-tailers(electronic retailers). The larger number and alternative of closer products increase the etailers trends (electronic retailers) to switch between suppliers. -> Reduces cost of switch over
  • 10. THREATS OF NEW ENTRANTS E-SCM reduces the entry barriers and makes market entry easier. Increase in suppliers makes the transmission of power to e -tailers (electronic retailers). There is no obstacle for entrance of providers to supply chain e-tailing. So, because of the convenience of the increasing number of e-tailers suppliers (electronic retailers), the level of competition between them increases at any time. E-SCM lowers the costs of suppliers' switching. E-SCM lowers difference among competitors. Keeping dedicated E-SCM applications for the newcomers is difficult. ->Threat of new entrants - High
  • 11. BARGAINING POWER OF E-TAILERS The power of E-tailers (electronic retailers) is more than suppliers once that the e- tailers (electronic retailers) have more choices than the suppliers. In addition, E-tailers (electronic retailers) may lower themselves to work easily with suppliers. -> Bargaining power - High
  • 12. COMPETITION FROM RIVALRY The intensity of competition's intensity is one of the major factors for the competitiveness of the E-Tailing industry. There are many electronic stores about the same size and with a small distinction between products and services. Due to the lack of any obstacle to market entry and the presence of a large number of suppliers and E-tailers (electronic retailers), there is a higher level of competition among them as well as with each other. E-SCM generally makes the industry more efficient. -> Competition from rivalry - High
  • 15. FUTURE OF INDIAN SUPPLY CHAIN MANAGEMENT
  • 16. SIX BIG TRENDS THAT CHANGE THE SCM INDUSTRY  More Mega Cities  Proliferation of segments  Improved Supply chain Infrastructure  Better Regulatory Climate  Stronger Global Connect Affordable and Accessible Technology
  • 21. IMPROVED SUPPLY CHAIN INFRASTRUCTURE
  • 22. BETTER REGULATORY CLIMATE GST Fiscal Incentives Sustainability /Activism Changing regulations
  • 24. CHALLENGES THAT WILL CONTINUE IN 2025
  • 25. REFERENCES • Supply chain 2025 – trends and implications in India By A.T.Kearney • Analysis of the effect of e-supply chain management (e-scm) on retail industry By Zeinab Zarat ,Dakhely Parast, Saeed Vanaki and Farsad Abdar