Determining Industry Attractiveness for ALMA: A Macro Level Analysis

Attractiveness Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a) Macro level analysis...........................................................................................................3
b) The macro industry test......................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
In order to determine the attractiveness of an industry for starting a business in that
industry it is important that a macro level analysis is done of the business environment that can
help in determining the level of competition, favourable and unfavourable market conditions etc.
of an industry (Lang, 2016). In this report a macro level analysis of industry attractiveness for
ALMA which is an online platform that helps the customers in buying variety of grocery
products online will be done. Porter’s five forces model will be used for determining the
attractiveness of the industry in which ALMA will start its business.
MAIN BODY
a) Macro level analysis
Porter’s five forces model is a tool that can help in strategically identifying the
attractiveness of an industry by determining the intensity of competition so that the profitability
level of the industry for business can be known. ALMA is a new business start-up which will
provide its customers with the opportunity of ordering online their groceries and general
merchandise by partnering with all the small and large grocery stores. This will help the
customers in getting a variety of products by adding the items as per their requirements in their
cart and getting the items delivered at their doorsteps thereby increasing their convenience to
shopping. Following are the five competitive forces which work on AMLA in the online grocery
industry:
 Threat of existing rivalry: These are the competitors which are already present in market.
ALMA is an online retailer with no physical outlet that helps in providing its customers
with a variety of items by partnering with grocery stores so that convenience of shopping
can increase (Hwang and Lyu, 2018). The competition is gentle for ALMA as there not
many online stores who have partnered with different grocery stores to provide a variety
of products at single platform.
 Threat of new entrants: As the concept of ALMA is unique it will take time for the other
competitors to enter the market. Also ALMA is partnering with all the small and big
retailers which will help it in dealing with this threat and function smoothly in market.
 Bargaining power of suppliers: As the company is partnering with all the grocery stores
that are locally present which will give the company an availability of supply from a