Essay about E-Commerce Industry Analysis- Porter's

1612 Words 7 Pages
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…
The presence of already established big players also increases the intensity of rivalry here. The extent of industrial rivalry can be understood by the fact way the firms respond to the moves made by the competitors. The growth figures and the number of new entrants explain to a large extent the rivalry present in this field.

Industry Overview & Size
By 2014, Asia is set to become the biggest market for e-commerce companies all over the world with India and China being the major players. Global e-commerce sales are expected to grow at approximately 21% to reach $963 bn in 2013.Security remains the biggest concern for the e-commerce industry. But with non-banking players also having keen interest in the payment industry, the e-commerce market will get an impetus it needed. Cash-on-delivery has been one of the key growth drivers and is believed to have accounted for 50% to 80% of online retail sales. Although e-commerce business started in late 90’s but due to the lack of support ecosystem growth in this sector did not take off. However the dot-com bubble burst in 2002 led to collapse of more than 1000 e-commerce business.
The first wave of e-commerce in India was brought by online matrimonial and online recruitment industry. In 1996, the first online matrimonial portal was launched in India. In India, currently, total sales from e-commerce business are $1.6 bn. The industry has seen

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