Question

In E-commerce industry. “Rivalry among existing competitors takes many familiar forums, including price discounting, new product introductions, advertising campaigns, and service improvements. High rivalry limits the profitability of an industry. The degree to which rivalry drives down an industry’s profit potential depends, first, on the intensity with which companies compete and, second, on the basis of which they compete” . For this discussion forum, describe the intensity and the basis of rivalry in the industry in E-commerce.

Answer 1

E commerce industry has provided a platform for competition which gives sellers low to moderate bargaining power while consumers get a high bargaining power. This industry has allowed markets to span geographies and given a platform for businesses to thrive outside the constraints of their localities. The intensity of competition is quite high as firms in ecommerce business try to retain customers by enhancing cusyomer experience and increase the market share by introducing seamless technologies for purchase and payments. The firms in ecommerce industries compete on the basis of quality of products, ease of ordering and time take for delivery, return and refund methods and time taken to do so, customer complaint redressal, Availability of wide range of products, comoetitive pricing, discounts and additional offers are some of the most common grounds for competition.
Ecommerce industry has a intensity of competition since ecommerce industry is the most commonly used platform and as the consumer base increases there is a push to grab macimum market share among ecommerce firms. As world moves from physical to online retailers the scope of the industry is bound to increase in the near future as more and more people shop online, thus there will be more expansion in near future as result the intensity of competition is very cut throat in the ecommerce industry.