In today’s society, customers are well informed. Consumers have access to high quality information regarding the services of online retailers and the products they sell. As a result, there is not much switching cost for the customers. Within the e-commerce industry several small and big brands have cropped up. Both of these factors influence the growth of the e-commerce retail industry. An increase in world economics and an increase in the growth of technology have been major contributors. The Ecommerce industry has flourished during the last few years. This following report will outline these elements as it corelates to the e-commerce retail industry. The threat from rivals are often times reviewed as well. The five forces are composed of the following elements: buyer power supplier power the threat of new entrants the threat from substitutes and the threat from competitors. This analysis is useful, because understanding the forces that could affect a business’s profitability enables owners to be proactive in making adjustment accordingly. Porter’s Five Forces is a tool used for understanding the competitiveness of a business environment, and for identifying the potential profitability of a business strategy.
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