Porter’s Five Forces Model for E-commerce Craft Business

Running Head: MANAGEMENT
0
E-commerce
Porter’s Five Forces Model
(Student details :)
5/29/2019

Environmental Scan
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Contents
Porter’s Five Forces Model for E-commerce Craft Business....................................................2
Porter’s 5 Forces Model.............................................................................................................2
Threat of new entry................................................................................................................2
Supplier of Power...................................................................................................................3
Buyer Power...........................................................................................................................3
Threat of Substitutes..............................................................................................................3
Rivalry among existing competitors......................................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................4

Environmental Scan
2
Porter’s Five Forces Model for E-commerce Craft Business
The report is containing a real-world analysis in order to help inform the decision-
making of a business owner and manager of small independent craft supplies store. This
analysis of the craft industry will be based on Porter’s 5 forces model particularly emphasized
on online viewpoints of craft supplies retailing (Dobbs, 2014).
Source: (Dobbs, 2014)
Porter’s 5 Forces Model
In this way, on the basis of this craft industry analysis, this paper will further assess
the main risks to craft business if it were to move online as follows:
The threat of new entry
When craft retailing business is going to enter into the online market then the threat of
new entry will be low. The threat is low because barriers to new market entry are less for a
craft business. In addition to that, capital requirements while switching from offline retailing
store to online store for a craft industrial firm are also less which makes the threat of new
entry low. Government policies are less strict and less complex for craft industries working
online or moving from offline to the online market. Besides, access to various distribution