City Run Is A Family Owned, Walking And Running Company

1860 Words Nov 19th, 2014 8 Pages
Charm City Run is a family owned, walking and running company that specializes in finding the perfect shoe for every individual. The company opened 12 years ago and currently has 5 locations. The employees pride themselves on providing outstanding customer service and focus on building relationships with their customers. CCR’s business consists of selling shoes and hosting running events. Porter’s Five Forces Model of Industry Competition is “A tool for examining the industry-level competitive environment, especially the ability of firms in that industry to set prices and minimize costs.” (Dess et al., p.55). The five forces are threat of new entrants, buyer bargaining power, supplier bargaining power, threat of substitute products and intensity of competition. All of these forces affect CCR differently (refer to figure 2).
The strongest threat, amongst the five forces, to CCR is intensity of competition. Brian Nasuta, a partner at CCR, explained in great depth how competitive the footwear industry has become. He explained that CCR directly competes with many other local, specialty, shoe stores. A central component of CCR’s strategy has been hosting events, which helps the company maintain relationships with their clientele. Competing firms have adopted this method, which strengthened the rivalry in this aspect of the business. A rapid increase in the number of events in Baltimore may decrease attendance at CCR’s existing events. This increase in competition may be…
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