Retail Industry in India - Porter's Five Forces Strategy Analysis

Huge population, increasing per-capita income and changing consumer habits - all these developments have culminated in the booming of the retail sector in India. The majority of retail sales take place through the unorganized sector, which is stores that are popularly known as the kirana, or the mom-and-pop-up stores. The organized retail sector that constitutes highly organized malls presently does not enjoying any significant share of the market revenue but it is estimated that future belongs to the organized retail sector in India.

Aruvian Research analyzes The Retail Industry in India in Michael Porter's Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.