E-Commerce Industry Analysis- Porters - 1596 Words

Firm Strategy, Structure and Rivalry | * India’s e retailers have primarily relied on PE funds and venture capitalists * Pricing is the point of differentiation from existing Brick and Mortar shops * Focus on segments like Books and apparels to slowly increase their offerings * innovations in delivery and technology in recent years like Cash on Delivery, CRM * Introduction of Guarantied replacement approach.Rivalry- * Business model is easy to copy * Beginning of extreme price war has led to difficult profit making. | Demand Conditions | * +Rise in disposable income * -Severe market competition * -Wide prevalence of cash economy * -Higher consumer loyalty | Factor Conditions | *†¦show more content†¦Indian business players have adopted new business models like stock and sell, consignment and group buying. But problem area remains such as in-house logistics and locations of warehouses. Online travel has been the largest e-comm erce sub sector by revenue in India. But online retail is catching it up faster than ever. India’s online recruitment industry took shape in 1997. The growth of the services sector, following the launch of economic reforms in 1991, resulted in the creation of additional jobs. The entry of low cost carrier in the aviation sector of India in 2005 resulted in the second wave of e-commerce in India. They began to sell their tickets online either directly or through third party means which triggered the chain of third party developers offering these services. This move also gave impetus to the online travel sites like yatra.com or makemytrip.com. The growth in online retail was mainly due to changing consumer lifestyle and need for convenience to shop from home. This brings the third wave of growth in e-commerce business in India in 2008 as many online retail website launched in that period. Online payment business is hit by low penetration of credit and debit cards; high failure rate of online payment transactions. 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