Question

Examine and analyse the industrial competitiveness of Shopee Malaysia in the e-marketplace applying the Porter Five Forces model. (explain in detail)

Answer 1

Shopee Malaysia is a leading marketplace in malaysia.Their platforms existing across Asia including Singapore, Thailand, Vietnam, Indonesia, Philippines, and Taiwan. Its amazon of malaysia which provides a platform to seller and buyers to transact in a hassle free manner. According to Michael E Porter Five forces model the platform has some key elements to analyse the industrial competitiveness of Shopee Malaysia. The porter five forces model are as follows-

1. Threat of New Entrant- As we know Shopee Malaysia is a national platform for malaysian citizens, it provides  varieties of products, hassle free and fast shipping, an exclusive and interactive platform, a brand equity & trust for online sellers and buyers which makes threat for new entrants. This is the first competitive advantge for Shopee Malaysia over its competitors.

2. Bargaining power of Suppliers- As its a marketplace, so the bargaining power of suppliers also very low as there is nothing like Shopee Malaysia which gives competition to their legacy. Its uniqueness in marketplace model and its system makes it more favourable for suppliers which lowers the bargaining power of suppliers.

3. Bargaining power of Buyers- Shopee Malaysia's strong presence in malaysian market makes it more favourable for buyers. Although their are other competitors like Mom and Pop stores but due to their geographical constraints, Shopee Malaysia has an edge over its competitors.

4. Threat of Substitute products/ services- As long as Shopee Malaysia makes innovation its tool there are low chances of threat of substitute products / services. As offline and other new startups can create the threat for Shopee Malasyia but in short run the threat will not persist. It may arise in the long run. If they want to sustain in the market, they need to innovate.

5. Rivarly among existing firms- Shopee Malaysia is the more trustable firm when it comes to shop in Malaysia in C2C model.  Although there are sellers available and they have the rivarly of grabbing marketshare its natural that existing firms compete with each other for marketshare advantage. Although Shopee Malaysia is a leading brand which makes tougher competeitive norms for firms to compete with it. As this has huge and strong presence in Malaysia and other Island Nation.

So to conclude, the Porter's five forces model will help us to analyse the industrial competetiveness the firm has on others and this will also help to understand strategic planners to  understand the inherent profit potential within an industry.