Question

AS INDIAN ONLINE INDUSTRY IS MOVING TOWARDS CONSOLIDATION, APPLYING THE INDUSTRY ANALYSIS TECHNIQUE TO SUPPORT UR ARGUMENTS, IS IT PROFITABLE TO ENTER INTO THIS INDUSTRY.

Answer 1

Indian online industry in which all the industry players which are leaders of the respective segments are trying to secure their position and they are trying to maximize their market share and consolidate their market share so they are trying to adopt such strategies which are not beneficial for new companies to enter into this sector because these large companies are not giving anything away and they are trying to keep their market share in their own hand and they are not giving any room for new company to enter into the market and it is not an easy market to enter because new companies will be needing a large amount of initial funding in order to enter into this kind of industries.

when we will be looking for entrance into the online market then we will be analysing through porter five forces using the industrial analysis method, and this will be looking into to bargaining power of suppliers as well as bargaining power of buyers and entry and exit route along with factors leading to competition with competitors. This will help in gathering and idea about bargaining power of the company.

We can also add of SWOT analysis which will be analysis of strength, weakness,opportunities, and threats of the particular online business in order to sustain and survive in the competitive market.

It can only be profitable to enter into this industry , if company will be having an unique product and pricing power in its own hand and the company will be trying to gain and easy entry into the market and there are not much competitors because if the company is trying to get into such products which are existing and established into the market and there are market players that the company will be have to to fight it out with the pricing strategies, which is not easy for a new firm because they cannot cut on prices of their own products at the initial phase, because that can lead to insolvency of the company, so company will be having an unique product in order to counter the existing players in the market.