Porters Five Forces on Retail Industry Essay

Five forces Model1) Suppliers power2) Buyers Bargaining effect3) vernal Potential Entrants4) Threat of Substitutes5) Industry CompetitorsSTRENGTHS1) Suppliers powerA constituent is unattractive if the companys suppliers ar able to raise prices or reduce quantity supplied Ss in apparels section have major brands like, Arrow, Levis, lee, Provogue, Pepe, loues Philip, Zodiac failing2) 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 act as a substitute to SS for eg Zodiac, Raymonds, comment 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/ retail merchant for foreign brands entering India. The company has already signed an agreement with UK retailer Mothercare to retail their products. The company has tied-up Estee Lauders MAC brand of cosmetics with cardinal 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 similar tie-ups, particularlyas the politics has allowed up to 51% FDI in single brand retailing.Shoppers Stop has 4 division the workforces apparels, ladies apparels, kids wear 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) classic moments for entry level 2) silver acuity 3) golden glow, members fall in different cateogory dependimng on theior spends with the company, they also grow reward points which they can redeem later on.