Porters Five Forces on Retail Industry Essay

Five forces Model1) Suppliers supply2) Buyers Bargaining Power3) New probable Entrants4) Threat of Substitutes5) Industry CompetitorsSTRENGTHS1) Suppliers violenceA segment is unattr roleplayive if the companys suppliers are able to raise prices or reduce quantity supplied Ss in apparels role hasten major brands like, Arrow, Levis, lee, Provogue, Pepe, loues Philip, ZodiacWeakness2) client Buying PowerThe bargaining power of customer at SS can be a weakness if customer strip to substitutes.There are various other brands which could act as a substitute to SS for eg Zodiac, Raymonds, change plus, and Arvind Mills3) Industry competitors competitors like Globus, west and Lifestyle, Wills Lifestyles, Rpg ,Pantaloon who catered to the same segment of customers, entered the market.4) New potential difference entrantsPreferred Partner for Foreign PlayersSS is the favored partner/retailer for foreign brands get in India. The company has already signed an system with UK retaile r Mothercare to retail their products. The company has tied-up Estee extollers MAC brand of cosmetics with matchless strongly performing outlet subject so far. SS has also tied up with Austin Reed for both manufacturing and sell its brand in India. We expect numerous more opportunities for similar tie-ups, particularly as the government has allowed up to 51% FDI in single brand retailing.Shoppers Stop has 4 division the Mens apparels, ladies apparels, kids behave and the Non-apparels. Following is their contribution to the turnover.* Mens 43% of sales* Womens 18% of sales* Kids 8% of sales* Non-Apparels 31% of salesSS LOYALITY PROGRAMESSS PIONEERED INDIAS first loyality programesThey have 3 tier loyality programme 1) real moments for entry level 2) silver process 3) golden glow, members fall in contrastive cateogory dependimng on theior spends with the company, they also receive reciprocate points which they can redeem later on.