Bargaining Power Of Suppliers
Table of Contents
1. INTRODUCTION: THE INDUSTRY DEFINITION 2
2. THE POTENTIAL ENTRANTS | Threat Of New Entrants: HIGH 3
2.1. LEVEL OF PROPRIETARY KNOWLEDGE NEEDED 3
2.2. CAPITAL REQUIREMENT 3
2.3. LICENSING 4
2.4. RETALIATION 4
3. THE SUBSTITUTES | Threat Of Substitutes: LOW 4
3.1. DIRECT PURCHASE BY CIRCUMVENTING TRAVEL AGENTS 4
4. THE BUYERS | Bargaining Power Of Buyers: HIGH 5
4.1. BUYER’S PRICE SENSITIVITY 5
4.2. RELATIVE BARGAINING POWER 5
5. THE SUPPLIERS | Bargaining Power Of Suppliers: HIGH 5
5.1. FIRM’S PRICE SENSITIVITY 5
5.2. RELATIVE BARGAINING POWER 6
6. THE COMPETITORS | Rivalry Among Existing Competitors: MEDIUM 6
6.1. DIVERSITY OF COMPETITORS 6
6.2. PRODUCT DIFFERENTIATION 6
6.3. MARKET & INDUSTRY CONDITION 6
6.4. COST CONDITION 6
7. INDUSTRY NOT ATTRACTIVE: SUMMARY OF THE 5 FORCES DETERMINING
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However, this resulted in losses in this segment since intense competition from other players in the market like Yatra.com, Cleartrip.com resulted in price war and all players have started bleeding money in a major way.
• Both established and emerging providers of travel services and products are competitors of Make My Trip
• Certain competitors have launched brand marketing campaigns to increase visibility with customers. For example – Salman Khan for Yatra
• Certain new entrants have better connect with target market. For example – RedBus (Buses), Ixigo (Trains)
• Others may offer advantages such as lower transaction fees or discounted prices or bonus loyalty awards Recommendations:
2. Expanding hotels and packages business by proactively investing to increase automation, to adopt new technologies and a deep customer focus
3. Continue to focus on automation by making changes to our extranet to allow more of our hotel suppliers to use a self-service model in managing their rates, inventory, content and
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