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  Company Profile: MS Ventures Financial Planners MS Ventures financial planners is a Mumbai based consulting firm providing goal based financial  planning services to individuals. MSVFP is approved by Financial Planning Standards Board of India and specializes in providing customised solutions to meet your financial goals. The company is promoted by Mukund Seshadri (MBA, CFP) and Urmin Vora (CA, MBA) who have over 10 years of experience in financial services industry. MSVFP has a holistic approach to personal financial planning and wealth management. Broadly the areas considered by the company for planning include the following: 1.   Contingency planning 2.   Risk planning 3.   Cash flow management 4.   Liability management 5.   Investment Planning 6.   Tax advisory 7.   Retirement planning Today the company has over 80 clients which include salaried individuals, self-employed business owners and professionals having different backgrounds and lifestyles.  Porter’s five forces framework for financial planning industry:   1.   Rivalry Among existing competitors: India’s wealth management services sector is largely fragmented, which isn’t surprising given the industry is still in an embryonic stage. The industry consists of independent financial advisors and few large institutions. Currently three large institutions have got into the business of financial planning; Edelweiss Capital, ICICI Securities and Ameriprise India. Ameriprise is the first international company to foray into this business in India. Some key statistics showing the number of Certified Financial Planners (CFPs) in India are given below. Break up of Financial Planning Community in India Details Numbers Percentage  No. of practicing financial planners 700 0.92%  No. of CFP Certificants 1627 6.50%  No. passed CFP Certification final exams 3620 13.48%  No. enrolled for CFP Certification Program 25758 100.00% From the above information we can see that only 1600 odd professionals to serve the financial planning needs of the growing Indian middle class and HNI investors. Given the limited number of players in this  industry, the rivalry among existing competitors is low. Also the competition is not based on price but the quality of service. 2.   Threat of Substitutes: Financial planners face a great deal of competition from other professionals, including accountants, stockbrokers, private banks as well as insurance brokers. In addition, there are a number of online services that offer financial products to consumers at a lower cost. Some potential clients may also seek advice from a less reliable source such as the media or family and friends. However this trend is changing gradually and more and more people are seeking professional advice for planning their finances. Thus the threat of substitutes for the industry is moderate. 3.   Threat of new entrants: The barriers to entry in this industry are low and the business is not capital intensive. Hence new players can enter into the fray very easily. Also the industry has been growing at a healthy rate.   The seemingly rapid growth of the industry means that the newcomers do not necessarily need to lure the existing customers away from other financial planning firms and can build a successful business through a strong demand for financial services from those who have never had a planner before. However brand name acts as an important barrier to the entry of the new players because the customers prefer established players to the newer ones. Thus we can conclude that the threat of new entrants is moderate. 4.   Bargaining Power of Buyers: Powerful customers can exercise their force by demanding better quality and more services at a lower  price. By playing industry participants against each other, they can push the prices down, affecting the industry’s overall profitability. Financial planners also need to find ways of mitigating the customers’   power or even using this power to their own advantage. As an initial step, it is important to analyse the conditions that would contribute to clients having substantial leverage. Also since the switching costs for the customers is low. Thus the bargaining power of the customers is high. 5.   Bargaining Power of Suppliers: The financial planning industry depends on a number of suppliers, including fund managers and platform  providers. Fund managers and platform providers (e.g. master trusts) depend heavily on financial planners to distribute their products to the end users. In addition, there are many suppliers of these products and the switching costs are usually low. Thus the bargaining power of suppliers is low. From the above analysis we can conclude that the overall effect of the five forces on the financial  planning industry is low and the industry has huge growth potential in India.  Industry Driving Forces   Product Innovation: Internet and mobile technology penetration is deep among the target segment and has the potential to exponentially increase the reach of wealth management services. Technological change Entry of major firms Regulatory influences and government policy changes Changing societal concerns and attitudes Key Success Factors  
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