PORTERS FIVE FORCE MODEL ON INDIAN E-SUPPLY CHAIN MANAGEMENT Presented By,

Aman SatiAiyesha.ALakshay ShivaniMoumita Bhattacharjee and Shubham Raj2nd 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 ENTRANTSE-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

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 ConnectAffordable 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 Sustainabilit

y /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