Porters Five Forces on Retail Industry Essay

Five forces Model1) Suppliers cater2) Buyers Bargaining Power3) New Potential Entrants4) Threat of Substitutes5) Industry CompetitorsSTRENGTHS1) Suppliers powerA part is ugly if the companys suppliers are able to raise prices or reduce quantity supplied Ss in apparels divide boast major brands like, Arrow, Levis, lee, Provogue, Pepe, loues Philip, ZodiacWeakness2) Customer Buying PowerThe bargaining power of customer at SS can be a weakness if customer shift to substitutes.There are various other brands which could acquit as a substitute to SS for eg Zodiac, Raymonds, Color plus, and Arvind Mills3) Industry competitorscompetitors like Globus, Westside and Lifestyle, Wills Lifestyles, Rpg ,Pantaloon who catered to the same segment of customers, entered the market.4) New potential entrantsPreferred Partner for Foreign PlayersSS is the preferred partner/retailer for foreign brands go into India. The company has already signed an agreement with UK retailer Mothercare to retail the ir products. The company has tied-up Estee Lauders mac brand of cosmetics with one strongly performing outlet opened so far. SS has also tied up with Austin Reed for both manufacturing and retailing its brand in India. We expect many more opportunities for kindred tie-ups, particularlyas the government has allowed up to 51% FDI in single brand retailing.Shoppers Stop has 4 division the Mens apparels, ladies apparels, kids wear and the Non-apparels. Following is their contribution to the turnover.* Mens 43% of gross 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) classic moments for entry level 2) silver edge 3) golden glow, members strickle in different cateogory dependimng on theior spends with the company, they also receive reward points which they can redeem later on.