Harrison's Competitive Competitors

Competitive Rivalry As you study the model, you will see that the rivalry is the component that all the competition and their threats centers around. Please describe this for Company G.

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. If there is a market with much choice supplier choice, bargaining power will be less.

Intensity of Rivalry: the intensity of competition in this industry is high. As we can

Suppliers have less power because there are a lot of suppliers and they all willing to accommodate and provide discounts for their customers (economies of scale).

Competitive Rivalry: According to the amount of products available, rivalry intensity is high. What makes for a high intensity of rivalry includes competitors aggressively targeting each other’s markets and aggressively pricing products. Also, competitors are of equal size and market share and industry growth is slow. Lastly, industries fixed costs are high which creates intense competitive rivalry.

* Suppliers are numerous, and low differentiation, along with some backwards integration by players who sell their own branded goods, weakens supplier power.

According to Michael Poster in his book Competitive Advantage, the degree of competition attractiveness of an industry can be determined by the five forces:

Bargaining power of suppliers: A boutique and diverse company holds bargaining power. GAME has the opportunity to build portenial mega stars and partner with these larger competitors.

|competitive force comes from industry internal rivals, which compete heavily on price in addition to quality and delivery. |

Competitive rivalry force used to examine how intense the competition of the company currently in the marketplace. When the competitive rivalry is high, it means that there are few businesses are provided the same or equally

The bargaining power of buyers stands in a direct relationship with the bargaining power of suppliers. If the bargaining power of buyers is substantial it increases the opportunity cost of suppliers. The greater the buyers concentration the greater their bargaining power. This bargaining power is also increased in markets where the suppliers’ concentration is high. The bargaining power is also increased when the cost of switching from one supplier to another is low. In instances where backward vertical integration is possible i.e. buyers setting up their own chains of suppliers the bargaining power of the buyer increases in that their prices may become more competitive. In a market where the buyers are more concerned over quality than price their bargaining power decreases as they are less inclined to shop

Bargaining power of suppliers. Suppliers have the ability to leverage, control, and negotiate the cost of their products (Hill et al., 2015, p. 56). In the case of the suppliers of the office supplies industry, more so for Staples, the bargaining power is weak and is considered to be low. The reason for its power being weak is a result of large companies having several suppliers that will easily compete against each other to provide the lowest cost of products.

Negotiating power in the industry is particularly strong. There are few buyers of the industry's products are standard or most obscure, sellers and buyers in changing the face switching costs: the buyer has the power to

The five competitive forces that shape strategy are, (1) Threat of New Entrants, (2) Threat of substitutes, (3) Bargaining Power of Suppliers (4) Bargaining Power of Buyers, and (5) Rivalry among Competitors. Those considered rivalry have measurable factors that rank each force as “Low, “Medium or “High” strength. The combined strength of the five forces determines how appealing the industry is to possible threats. The five forces are briefly defined below.