Description Of An American Retailing Industry

1902 Words Oct 11th, 2016 8 Pages
Description of Industry:
Industry: American Retailing Industry, for example, Target Corporation is an American retailing industry company, founded in 1902 and headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, behind Walmart.
Sector: Retailing as a sector includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the small orders of a large number of individuals.
Market Segment: In retail, many customers value different attributes from retailers, such as the value of geographical convenience from a department store or luxury in specialty items to be purchased at such as an Ann Taylor retail store.
Assessing the “Immediate” Competitive Environment - (Porters Five Forces)

Porters Five Forces: Barriers to Entry
Are there economies of scale?
The economies of scale in the retail industry are huge. All of the companies in this industry have first mover advantage. Many of the competitors in this industry already have immense and diverse relationships with many of the suppliers they obtain and any new competitor will have a tough time trying to squeeze into the dealer network in order to establish themselves as any type of threat to another retailer.
How much product or service differentiation is there? (Strong brand loyalty or identity?)
Most retailers have different brand identities which naturally brings in the customer into their business. For example, a large…
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