INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (EDUCATION CAMPUS CHANGA) Assignment: Strategic Management 2

Submitted to: Mr. Jignesh Darji Submitted by: Irfan S. Mahida (07/MBA/28)

FIVE FORCE ANALYSIS FOR RELIGARE COMMODITIES LIMITED

The five competitive forces that determine industry profitability determines the ability of firms in an industry to earn, on average, rates of return on investment in excess cost of capital. The five forces determine industry profitability because they influence the prices, cost and required investments of firms in an industry the element of return on investment. The main aim of these five forces is to raise the odds of discovering a desirable strategic innovation. This framework allows a firm to see through the complexity and pinpoint those factors that are critical to competition in industry and also to find out those innovations that would most improve the industries and its own profitability.

Bargaining power of suppliers:

The main suppliers of commodities industries are national stock exchange and multinational stock exchange MCX, NCDEX, NMCE. NCDEX is regulated by Forward Markets Commission in respect of futures trading in commodities. The bargaining power of suppliers is very high.

Bargaining power of buyers:

The main buyers of commodities industries are Small Investors, Franchisee/Associate Partners, Hanis, Mf Companies. Customer have higher bargaining power because there are many other option for investment like insurances mutual fund bank fixed deposit etc. thats why bargaining power of buyer is very high.

Threat of new entrants:

Threat of new entrants is also very high because of low investment and high return of investment. The potential entrants are Apollo shinduri, Zaveri, Karvy, Marwadi, J.K securities, Geojit.

Threat of substitute:
The major substitutes of commodity are Mutual funds, Insurance, FDs, Real estate, Debt market.

Industry competition:

The major competitors of religare commodity limited are sherekhan, 5paisa.com, Motilal Oswal, India Bulls, Anand Rathi.

POTENTIAL ENTRANTS
Religare Commodity Appollo Shinduri Zaveri Karvy Marwadi J.K Securities Geojit

SUPPLIERS
Mcx Ncdex Nmce Regional Sharekhan 5paisa.com Motilal Oswal India Bulls Alpha Commodities Kuwarji Anand Rathi

BUYERS
Small Investors Franchisee/ Associate Partners Hnis Mf Companies

Mutual Funds Insurance FDs BSE/NSE PSC/KVP/NSC Real Estate Debt Market

SUBSTITUTES