Michael Porter described a concept that has become known as the "five forces model". Using this model, business leaders can develop a strategic edge over rival firms by better understanding. Porter’s approach takes an industry vista helping you to assess, at a corporate strategy level, the attractiveness of the industry to potential entrants at a given time. This is the Analysis of How Porter's Five Forces Model are going to impact on E-books industry.

1. Porter’s Five
Forces Model
E-books Retail Industry
ON

2. E-books Platforms in India.
There are 32 e-books platforms in India . Some of them are very popular,
those are given below :
• Amazon Kindle Direct Publishing. ...
• NOOK Press. ...
• iBooks Author. ...
• Google Play. ...
• Lulu. ...
• Blurb. ...
• CreateSpace. ...
• Smashwords

3. Future Of E-books in India
01 Revenue in the eBooks segment amounts to US$138m in 2019
02
03
04
05
Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 3.5%, resulting in a
market volume of US$158m by 2023.
User penetration is 5.7% in 2019 and is expected to hit 7.2% by 2023.
The average revenue per user (ARPU) currently amounts to US$1.76.
In global comparison, most revenue is generated in the United States (US$5,487m in 2019).
Source: https://www.statista.com/outlook/213/119/ebooks/india

4. Intensity
of rivalry
Potential
entrants
Buyers
Substitutes
Suppliers

5. Potential
Entrants
1) Level of
Government
Regulation
3
2) Capital
Requirment
3
3) Access To
Suppliers
2
4) Existing Brand
Strength.
2
5) Rate of Market
Growth.
2
• The threat of new entrants is
strong.
• Market entry is easier for domestic
players than foreign companies.
• It is a threat of the profitability of
established players.
• New entrants bring in new
capacity, substantial resources and
aggressiveness to gain market
share.
STRONG

6. Suppliers
Power
• The bargaining power of suppliers
is considered a threat to new
entrants.
• Suppliers enjoy bargaining power
by raising the price or reduce the
quality of purchased goods and
services.
• Suppliers can threaten with
forward integration and compete
directly with the existing firms.
MODERATE
1)Number of
Suppliers
2
2) Importance of
Industry to Supplier
Revenues.
1
3) Availability of
Substitute Raw
Materials.
3
4) Level of Raw
Material
Differentiation.
2
5) Switching Costs. 1

7. Buyers
power
• Buyers often wants high quality at
lower price.
• Buyers can be viewed as weak, if
they give the company the
opportunity to raise prices and
make more profits.
• The bargaining power of
customers is also described as the
market of outputs.
MODERATE
1)Number of buyers 1
2)Level of product 3
3)Cost of product 3
4)Number of buyer
profitability
2
5)Importance of
product
1

8. Rivalry
• The number and capability of your
competitors is very important.
• Rivalry occurs because one or
more competitors either feels the
pressure or sees the opportunity to
improve position.
STRONG
1) Number of
Competitors.
3
2) Level of
Product/Service
Differentiation.
2
3) Exit Barriers. 2
4) Importance of
Industry to its
players.
3
5) Cost of Capacity
Increases.
1

9. Substitutes
• The major substitutes to food retail
are food service and subsistence
farming.
• The existence of products outside
of the realm of the common
product boundaries increases the
propensity of customers to switch
to alternatives.
WEAK
1) Switching Costs. 1
2) Price of
Substitutes.
1
3) Benefits of
Substitutes.
2

10. Analysis
1) Potential Entrants STRONG
2) Suppliers Power MODERATE
3) Buyers power MODERATE
4) Rivalry STRONG
5) Substitutes WEAK

11. Conclusion
According to the analysis of the Porter’s five forces model ,
An existing ebook industries may or may not face risk in their
future life of business from becoming entrants. Similarly, there
is very great opportunity for new industries to show their skills,
but……can be chances of loosing a business due to strong
competitors.

12. Thank you