Bharti Walmart 5 Forces
Indian Retail Scenario in terms of Porter Five Forces
Porter in 1974 has given “Five Forces” model to assess the industry environment.
Five forces of Porter model which determine effectiveness of any Industry are: 1. Barriers to Entry 2. Bargaining Power of Buyers 3. Bargaining Power of Suppliers 4. Threat of Substitutes 5. Rivalry among Competitors
1. Barriers to Entry
India’s Retail industry has high barriers to entry for Global retailers. Reasons are as below. * Strict Regulation to prevent entry of global retailers to operate freely into India. Indian retail industry is …show more content…
In summary if we see all the five forces of Porter and draw inferences on profitability then Indian retail industry looks promising. Table below illustrates that. Porter Force | Intensity | Profitability | Barriers to Entry | High | High | Bargaining Power of Buyers | Low | High | Bargaining Power of Suppliers | Low | High | Threat of Substitutes | Low | High | Rivalry among Competitors | Moderate to High | Moderate to Low |
Since four Porter forces are have positive impact on profit so Indian retail industry has bright prospects. It will be good decision to enter into the Indian retail industry.
Growth across Different Segment of