Five Forces Analysis on Indian Retail Industry

ushers Five Forces Analysis on Indian Retail Industry An analysis of the structure of the industry should be undertaken in hal little to find effective sources of competitive gain (Porter, 1985). Therefore, in order to analyse the competitive environment of Tesco, Porters five forces analysis has been used by the police detective as follows: threat of substitute products and services The threat of substitutes in the grocery store retail marketplace is considerably low for diet items and strength to high for non- sustenance items. In the food retail market, the substitutes of major food retailers argon small chains of convenience stores, off licenses and primitive shops which are not seen as a threat to supermarkets worry Tesco that offer high quality products at considerably lour prices (Financial Times, 2009). Moreover, Tesco is further getting hold of these shops by opening channel stores in local towns and city centres creating a hurdle for these substitutes to raise the market. However, the threat of substitutes for non-food items, for instance clothing, is fairly high. It should be noted that so long as the economic recession prevails, customers will be inclined towards discounted prices hence Tesco is a threat to the speciality shops.

Threat of entry of new competitors The threat of entry of new competitors into the food retail industry is low. It requires huge capital investments in order to be competitive and to establish a brand name. major brands that have already captured the food retail market are Tesco, Asda, Sainsburys and Morrisons and they account for 80% of all shopping in the UK (Mintel, 2010). Therefore, new entrants have to produce something at an exceptionally low price and/or high quality to establish their market value. Gaining planning authorisation from local government takes a significant amount of time and resources to establish new supermarkets and this is therefore a considerable barrier to new entrants. Intensity of competitive rivalry The... If you demand to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .