Nisa Company Porter Five Forces Analysis

This assignment provides a comprehensive analysis of Nisa company's position in the retail industry using Porter's five forces model. The analysis includes an examination of the threat of new entrants, supplier power, threat of substitution, and bargaining power of customers. The results show that Nisa faces weak intensity of threat of substitution and bargaining power of customers, but strong intensity of threat of new entrants and supplier power. The assignment references relevant literature and provides a detailed explanation of the concepts used.

Businesses opportunities

Executive summary: Business opportunity
The aim of this project is to determine the mega trends in the industry and then
explore an appropriate entrepreneurial opportunity. Business refers to the organisation or
firms who provides their products and services to the people in return of a particular amount
of money. The business organisations need to provide the innovative products and services to
the customers for earning high profit and revenue. Business opportunity refers to the
situations through which a business can earn more money or it can also be said that it is the
business investment which enables the buyers to begin their businesses.
Different analytical models (4 P’s, SWOT, PESTEL, BCG, GE matrix and STP
model) are used to ascertain the commercial viability of the business proposal.
The discussion in this project essay is setting up a contractual arrangement with
NISA. The idea is that how to develop further from being a small private retailer with a few
shops in to becoming a partner with Nisa’s network. The entrepreneur retains its
independence but makes full use of the logistics capability of NISA.
This essay report will discuss the meaning of business opportunity and its centrality to
innovation and entrepreneurship.
This report will further evaluate the current business practices in management of
innovation and entrepreneurial endeavours. Also, the evaluation of propensity and readiness
for innovative opportunities along with a proposal for new product will be done in this report.
In the end, evaluation of information which is included in research report and innovative
ways for recognising the opportunities will be discussed in this report.
Market trend:
As the market is expanding in the rapid manner there are different types of factors that
influence a country economy and operating organisation. Each and Every business
organisation is facing dynamic culture that brings numerous factors of threats to it.
In context with this, online supermarket store is one of the leading industries while
having too many competitors available in the market. As this industry is becoming on the
fastest growing sectors there is a high risk of substitution and new entries in a marketplace
(Kasriel-Alexander, 2016).

Therefore, in order to remain in competition, it is essential for a business organisation
to continuously keep on investing in its research and development as to gain maximum
amount of current market knowledge and innovative technology. This brings satisfying
customers with great effectiveness. In addition, with this, periodically evaluation of rival
strategies and policies are required to done as to compete them with more effectiveness.
Along with this it is important for an organisation to adopt new and innovative tools
and techniques as to serve consumers in the best possible way and earn more advancement.
Within online supermarket industry, online purchase of food products to every
essential basic necessity is taking place. Customers prefer to buy even little utilities through a
medium of e commerce. All these, effectively change and bring the latest trends in
marketplace. As in the sector of online industry, competition is rising in a rapid phase
business organisation are required to adopt the latest technologies in order to boost their
effectiveness (Ng, 2014). This will aid in bringing prosperity in a country economy and
strengthen sustainability in a marketplace for long run.
In context with this, NISA has been a logistics company helping private entrepreneurs
set up their business at a larger scale by helping them with sourcing of supplies.
Along with this company is looking forward to using cognitive network in their
networking system as to perform their operations with more effectiveness and increase their
shares and position in UK in simultaneous manner. Furthermore, entity is planning to adopt a
new measure with the help of cognitive network that will aid them to offer their online
products and services in more attractive and advanced level.
The Opportunity:
The criteria for joining:
In order to join, retailers must have an existing business with a healthy balance sheet
or a start-up business and a sound business plan.
Entrepreneurs joining the NISA symbol group have to be able to take a minimum
delivery of 100 cases of chill/frizz per week plus 300 cases of ambient products per week.
The contractual requirements for Loco are a minimum of a five-year period.
The products are all delivered direct to the store and retailers can make use of Nisa’s
six-day-a-week delivery service. For Independent/Specialist we will work with retailers for a

mutual delivery profile however the minimum requirement is 200 cases of ambient per
delivery, with the option of 100 cases of chill/frizz over the week.
The support offers a partner to display NISA banner? What incentives do you offer?
Nisa earns its cut of the profit by working with partners rather than out of them which
makes the partnership quite unique. Nisa partners benefit from a strong rebate scheme which
rewards retailers on their volume, loyalty and behaviours. This is on top of the complete
support package that Nisa offers to enable partners to succeed in the market place.
The entrepreneurship:
Being a private retailer, this is an excellent opportunity to expand the business,
perhaps not at the same level as TESCO Express or Waitrose but provide grocery
requirements for the local clientele. Big stores like Tesco, Asda and Sainsbury are not
normally situated in high street and it is much convenient for the shopper to visit places like
Nisa for shopping instead of having to visit a large store and stand in the queue for half an
hour or so when the time is short.
Hence, a person with the requisite knowledge and ambition will find it an excellent
opportunity to take up and run the business in this niche segment.
Typically, NISA-bannered stored are small and almost the same size as Tesco Express
as the picture below shows.
Using different models will help develop the argument that it makes sense for an
entrepreneur to take up the offer from NISA and run his/her own business with the backup of
an organization which can supply grocery items instead of having to go to cash and carry
outlets every week.

Marketing mix-
Product:Wide range of items are offered from grocery to drinks to the customers.
Quality:All the big brans are available in the company stores.
Services: The entrepreneur places the order on line and it is delivered by NISA logistics.
Pricing:NISA offers very good discount, promotions and has reasonable prices.
Place:NISA provide us the stuff instead of retailer having to visit the warehouse.
Promotion: All offers are subject availability. All prices are correct at the time of going to
press. Please note, some offers and variants may not be available in all stores. All offers are
subject to availability.
The STP process

Segmentation
Segment your market. Your organization product or brand can’t be all things to all
people.
Targeting
Target your best customer and provides the goods and services according to their
needs and requirements.
Positioning
Position your offering and promotions of goods and services in the market place.

A SWOT report stands for Strengths, Weaknesses, Opportunities and Threats.
Strengths
The things that make you excited to join the company is the strengths include a
unique product offering, great visual merchandising, the store location, customer service or
the brand report.
Weaknesses
These are more negative and need to be dealt with carefully. Consider it as a far as
what is preventing and objectives from being accomplished that the organization could
change?
We think about the classes we looked for Strengths example client administration area, the
vibe of the store.
Opportunities
Here is where it all starts to come together. The answers for Weaknesses will help us
out therefore. For example, if one of the weaknesses we found is poor customer service then
we could give the Opportunity to increase staff training and customer feedback.
Threats

This is usually area-specific so note down other shops in the area that might pinch
customers off potential employer. Look at their pricing, promotions and sales in comparison
to SWOT Analysis in NISA.
Market Attractiveness
My protect position on NISA its strong because I will provide all groceries require from my
area.

BGE MATRIX
I believe I’m gone have a high market growth, and low market share in the beginning than I
think I’m gone move to a star which is a high market growth and high market star.
Culture of organization NILE they are very friendly and easy to do business whit HR
function they are very cooperative and kind a new entrepreneur.

 Political
1. What is the culture of the organization,
2. How is the HR function viewed by other functions?
 Economic
1. Are our customers likely to spend more or less money on the services we offer?
Yes, they will spend more money.
2. What is happening to the financial status of the organization - stable
3. Interest rates - low
4. Inflation – under control
 Sociological
1. Population shifts (age profile)
2. Education
3. Diversity
 Technological
1. What changes may be coming our way? NISA offers the latest technology for
order placing.
2. What new technology/ systems, online and technology advancement.
 Legal
1. What is happening in our sector that will impact what we do? It is the new trend
that private retailers are expanding.
2. Food stuffs as per UK regulations
3. What changes will impact the services of the organization – NISA provides all the
training etc.
 Environmental
1. Staff morale

2. Staff engagement
3. Need to reduce storage needs – NISA offers daily delivery, so no storage
requirements.
4. Management attitudes – very professional

Nisa retailers pricing concerns are threat to Co-op deal. If the deal goes ahead retailers
fear they could end up paying a higher cost price than Co-op stores due to additional costs.
They likewise affirmed centre declined. Bargaining. To surety those bargain NISA wants to
make retailers more competitive. They ask for evidence and a guarantee that prices be
cheaper.
Rivalry among existing competitors
The competitive rivalry is strong in the retail industry. Nisa company experience the
strong forces such as large number of firms in the retail market and large variety of retail
firms which defines the competitive rivalry in the retail industry. According to porter five
forces model, large number of the firm typically strengthen the competition in the market
place. The high variety of enterprise impose the challenges for Nisa company in terms of
developing its competitive advantage in the global market place(Mathooko and Ogutu,
2015).
Threat of new entrants
NISA company has the threat of the new entrants companies in the industry because
they will gain the market share from the market place. The position of Nisa is stronger if
there are barrier to entering of new companies in the marketplace. Increased brand image and
customer loyalty towards the company can make it difficult for new entrants to gain market
share. According to porter five forces model Nisa company has the strong intensity of threat
of new entrants because new entry of retail firm can easily achieve in the market(Burns and
Dewhurst, 2016).
Supplier power
The supplier power also affect the productivity of the firm because the bargaining
power of the supplier is also described as the market of inputs. Nisa has the few numbers of
supplier choice which increased the supplier power towards the firm. The bargaining power
of supplier also affect the cost of the products because if supplier of Nisa provides raw
material at high cost then company needs to sell its products on high cost which results in less
profitability of the firm.

Threat of substitution
The threat of substitution has weak intensity in affecting the retail industry
environment because Nisa offers a wide variety of products and services which have few or
no substitute. Company provides unique products and services to customers at the lower price
which impose the weak threat of substitution against the firm(Rothaermel, 2015).
Bargaining power of customers
Nisa faces the weak intensity of the bargaining power of the customers in the retail
industry environment because the large population of the customers make it difficult for them
to impose significant pressure on retail firms. The bargaining power of the customers affect
the profitability of the firm.

REFERENCES
Books and Journals
Kasriel-Alexander, D., 2016. Top 10 global consumer trends for 2015 (pp. 14-17).
Euromonitor International.
Ng, I.C., 2014. New business and economic models in the connected digital economy.
Journal of Revenue and Pricing Management. 13(2). pp.149-155.
Sudweeks, F. and Romm, C.T. Eds., 2012. Doing business on the Internet: opportunities and
pitfalls. Springer Science & Business Media.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management. 29(3). pp.334-354.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.