online book industry

2. Internet Secure Payment
Penetration Mechanism
Increasing Advent of
Income Technical Gadgets

4. Flipkart.
India book store.
Bookadda.
Crossword.
Infibeam.
Book shop of India.
Landmark.
Ebay.
India Plaza.
Simplybooks.
Penguin books India.

6. Low.
Entry Barriers are high.
Product Differentiation.
No Reduced
Capital Requirement. Resulting Price
Switching costs is very low.
Differentiation
Exit Barriers are low.
Technological Advantage.

7. Relative low.
No as such Product
Differentiation. No Rise in the
Resulting
cost.
No substitutes.(except
BAM)
Technology.

8. Moderate.
Switching cost
is negligible. Price cuts.
Resulting (Offers, Occasional
Full information sale)
about the Books.
Purchases large
volume.

9. Libraries.
Book Stores. Resulting Limits Profits.
E-books.

10. Low margins.
Limited supply Resulting Reduced Price
of books. Differentiation
Similar
products.

11. Ratings

12. Threat of new entrant (High) Score on Rating scale 0-5
Entry barriers (Low)
Product Differentiation(low) 2
Capital requirements(low) 3
Switching costs(low) 2
Access to distribution channels 1
Economies of scale 1
Brand Loyalty (low) 2
Proprietory product technology(low) 1
Average Score 13/7=1.85

13. Intensity of Rivalry Score on Rating scale 0-5
Price competition(High) 5
Advertising Battles(High) 5
Competitors(numerous & fragmented) 3
Market Growth(high) 2
Fixed costs(low)-online business 2
Differentiation(low) 2
Switching costs(low) 1
Brand Loyalty(low) 1
Exit Barriers (Low as low FC, no 1
specialised asset requirement etc)
Average Score 22/9= 2.44

14. Bargaining Power of Suppliers Score on Rating scale 0-5
(High)
Threat of forward integration(airlines 5
selling direct)
Supplier product important input to 4
buyer business
Low product differentiation, so low 2
Switching costs
Average Score 11/3= 3.6
Threat of Substitutes Score on Rating scale 0-5
Online books(Relatively Low) 2
Libraries 3
Average Score 5/2 = 2.5

15. Bargaining Power of Buyers Score on Rating scale 0-5
Buyer Group(Diverse retail & corporate 4
buyers)
Commoditized Products 5
Switching Costs(low) 3
Full information with buyers 5
Price sensitivity(High) 5
Brand Loyalty(low) 2
Average Score 23/6= 3.83

16. Threat of new
entrants
(1.85)
4
3
Rivalry among 2 Bargaining power
existing players of buyers
1
(2.44) (3.83)
0
Bargaining power Threat of
of suppliers substitutes
(3.6) (2.5)

17. Industry is less attractive & less profitable to operate in.
Dynamic & high growth Industry
Threat of new entrants in high
Strong bargaining power of buyer
Intense rivalry among existing players
Increasing commoditization prevents value creation and profit earning