BRIEF INTRODUCTION

PORTER 5 FORCES MODELNamed after Michael E. Porter, this model identifies and analyzes 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. 1. Competition in the industry 2. Potential of new entrants into industry 3. Power of suppliers 4. Power of customers 5. Threat of substitute products. DRIVING FORCESDriving forces are the major external forces which changes or alters the industrys competitive condition
KEY SUCCESS FACTORS- The combination of important facts that is required in order to accomplish one or more desirable business goals. They put impact on profit& loss and on the success and failure of the firm in respect of its competitors. These are basically internal factors. .

DRIVING FORCES
TELECOM
Regulatory policy of Trai (Telecom Regulatory Authority of India) Easy entry and exit of firms. More globalization. Threats of new entrants. Technological changes.

Organized Retail
Long term growth opportunities as it is a new sector. Globalization at outside companies like wall-mart is also trying to enter in to the country. Change in the buyers. (Higher medium level people)

Aviation
Industry growth, mainly in low cost fair Airlines. Change in the buyer. (Higher medium level people)

Easy entry as firm are attracted because as there cost reduces because they are not providing extra services and thus enhance profit margin .

Organized Retail
A) Threats of new entrants.
I. II. Entry of business groups as tatas, reliance and birlas. Entry of foreign brands .

IMPACT :- Fall in market share of existing players,slashing of prices and price wars. IMPACT RATING = 4

B) Threats of suppliers.
I. Increase in production cost leading to higher prices of raw material. II. Formation of cartels by suppliers leading to lower supplies and price increase. III. Suppliers deciding to export there product.
IMPACT:- Fluctuation in supply, longer production time, higher production cost. IMPACT RATING:- 3.5

C) Rivalry among existing players

I. II. Leading to price wars and discounts. Mergers and acquisitions causing inorganic growth.

IMPACT:- Receding margins, trade practices of monopolistic or illegal nature. IMPACT RATING:-3.75

TELECOM
A) Threats from substitudes.
I. Use of internet based calling and chatting services (voice over internet protocol). Use of radio device and walkie talkies.

II.

IMPACT:- Lowering of call duration and usage of telephonic devices. IMPACT RATING:- 3.5

B) Threats of new entrants.

I. II. New organizations coming in sector from local or foreign ground. Lowering of barriers by government and easy availability of licenses invites new players.

IMPACT:- Organization entering already a saturated market causing lower profit per company.

IMPACT RATING:- 4

C) Rivalry among existing players

I. II. Price wars. Customer poaching by number portability schemes.

IMPACT:- Slashed rates of calls leading to fall in profit margins and customers frequent switching . IMPACT RATING:-4

KEY SUCCESS FACTORS Aviation Industry

Here Kingfisher Airlines had strong financial backup of UB group Low cost airline by Air Deccan is its KSF These low cost airline charge low fares from the customers which something that firms must do to satisfy the customer In case of Kingfisher the parent company i.e UB group has dominant position in the market and its market share in each of the business is quite significant. Targeting more than many segments at the sane time by kingfisher. Diversification of revenues in case of Kingfisher.

Telecom Sector
Strong financial position of players like that of DFL, Parshavnath and IndiaBulls as these are companies of financial and real estate sector and they can only diversify if they have enough cash to throw in new sector It seems that BhartiAirtel and Hutch has got the advantage of Scale of operation as there competitors like Tata and Birla were not able to compete them. BhartiAirtel and Hutch opted for inorganic growth by expansion through acquisition of other players. Technological innovation by Reliance. Reliance also give low cost proposition to traders & small business groups. Reliance also introduces low tariff.

Retail Sectors
Strong financial position of the players who were there in the retail sector like Reliance and Future group. Strong market position in their current business areas/segments. Innovative technique by big bazaar (future group) i.e they give the Indian customer the feel of the kirana shop in the retail store itself, i.e the environment with which he is more familiar and satisfied.