Porters 5 forces for Flipkart

Threat of New Entrants Industry seems to digest very high potential entirely is at its nascent stage. Lots of ground of growth in the futureMany small players might enter to explore the marketHigh working capital investment is required as it is still in the nascent stage. Would non be much of a deterrent as venture capitalists ar interested in investing, as they see a future in it.Flipkart is already an established its brand name and network across the nation. Hence, it may non be affected by the entry of small players in its market domainFlipkart is slowly moving up. Although, other players ar learning from Flipkarts mistakes and trying to do better. Since the industry is emerging profits cannot be achieved. Determinants of supplier Power For Suppliers (product manufacturers), e-commerce is another platform to sell their products, without any differentiation Hence, e-commerce companies have little amount of bargaining power, including Filpkart.There is an exception in cas e of frequent products, as company has lot of alternatives. Their switching cost is low, if there is no contact.Not all suppliers may have the ability of willingness to forward integrate, as it is passing risky market.Price discrimination is very much possible.As Flipkart is an inventory- based business model, they spoil in bulk from their suppliers.Treating suppliers as partners would be very beneficial for Flipkart and its suppliers.Rivalry amongst existing firms Flipkart is having a hard time as it is competing with its competitors in e-commerce as well as retail stores.Flipkart has less competitors of the same size, and many in smaller size.Flipkart has lot of competitors now , but not as huge as them, small in size but large in number.Incentive to fight is low, as the market is big seemly for everyone to grow but there is no profit margin.Exit costs are very high, as Flipkart has an Inventory based business model.