The Price And Availability Of The Product

There is a threat of bargaining power of buyers as there is a lot of competitors, which give the choice to convert from one chain to another. Moreover, chains are working strongly in the promotion, price, opening branches everywhere, developing the product, and cares regarding quality. It

Threat of new entrants: Retail industry has a higher barrier to entry. First, it is difficult to work out a good value chain as it involves a complex process. Second, it is difficult for new entrants to gain competitive advantage and earn above-average returns in such a highly competitive market. Besides,

The threat of entry of the supermarket industry in US is low, which base on the analysis of the three major sources that related to the entry barriers. The first barrier is the economies of scale of the existing large supermarkets. When these incumbents achieved larger volume sales, they can have lower unit costs than new entrants, and it will very difficult for those new entrants to compete with them (Johnson, Whittington, &Scholes 2011). For example, Wal-Mart had invested in innovative procurement, automated distribution centre and bar coding to increase its economies of scale, and these investments created a great barriers for new small retailers to enter into the supermarket industry (Porter 2008). The second barrier is the incumbency advantages, which mean the incumbents established their own strengths that cannot be used by competitors (Porter 2008). For example, the top ten supermarkets in US have accumulated extensive experiences on how to run their businesses more efficiently than new entrants (Johnson, Whittington, &Scholes 2011). The subtle differentiation between the products that sold in supermarkets is the third barrier for new entrants. Because most of the product assortment is same or similar between each supermarket,

The threat that substitute products pose to an industry's profitability depends on the relative price-to-performance ratios of the different types of products or services to which customers can turn to satisfy the same basic need. The threat of

That being said, suppliers can have some power in regards to choosing the number of stores where their product can be purchased at. This allows the suppliers to regulate their sales and stay away from the “red tape”. The bargaining power of customers impacts HBC as customers are able to influence pricing based on their buying habits. Of course, customers do not choose the retail prices offered to them, however, if inexpensive clothing were to lead the industry, retail stores would adapt to this consumer demand and offer an abundance of inexpensive clothing due to consumer preferences. These forces lead to rivalry among competitors due to the many options offered to consumers to grant their desires. These forces combine to cause strategic implications for HBC. HBC must differentiate itself from its competitors who, similar to HBC, have large annual revenue, strong and profitable supplier agreements and large amounts of capital. As well, due to competitors large sale volumes, competitive pricing is an implication which faces

Companies in the retail industry operate in a high price elasticity environment as there is not much product differentiation to leverage. Buyers face almost no switching cost if they chose a substitute offering better value. On the contrary, large and diverse population making small purchases works in favor of the industry. No one individual or a small group has the power to significantly impact the industry, but overall buyers enjoy have a high bargaining power in the industry.

Ross Dress for Less has been keen to ensure it retains competitive edge where substitutes are concerned. The company through its price strategy coupled with purchasing methods which are unique can be said to be the key factors that counteract the threat of substitutes. There is the need for the company to keep watch of fake commodities in the market which may serve to undercut its market.

They even desired to open a warehouse in any city in Australia. Thus, there are a number of Australian clients who embraced the idea. They even asked the company to take charge of their goods from Australia to the different states in the U.S. However, the CEO cannot afford to establish one without making preliminary plans. Furthermore, they looked forward to meticulously design a business strategy or plan to ascertain successful and efficient operations. Described below are the warehouse operations that present the company’s supply chain.

The industry does not possess major threat from new entrants due to strong barriers to entry and strong competition for retail space. There is also a strong rivalry between competitors as limited space is being contested by major players alongside

availability of substitutes 1, and the threat of retaliation from incumbents (by lowering price, for

In this strategic management assignment, we will see how organization achieve and sustain competitive advantage. As the global leader of the international express and logistics industry, we will study how DHL has gained and achieved in sustaining its position in the logistics sector. To do so, the report will be cut in two parts. Firstly, an introduction will present, explain the subject and then expose

Suppliers in the industry seek buyers who can move a lot of merchandise in a short period of time. The threat of substitution is a big deal in this industry. Most retail stores carry the same types of products with little differentiation. This makes it difficult for companies in this industry to keep customers coming back. This places an emphasis on the need to build a good reputation with customers.

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.

The threat of substitutes: where it refers to substitute product as those that are available in other industry which can also fulfil the need and want of the consumers. It can affect competition in an industry by placing an invisible ceiling on prices which companies within the industry can charge, due to the fact that if the cost of substitute is low then the consumers will tend to purchase substitutes, therefore limiting the prices that a company can place on certain items to gain maximum profit. For example, lemonade can be substituted for a soft drink. Generally, competitive pressures arising from substitute products increase as the relative price of substitute products declines and as consumer 's switching costs decrease.

Warehouse group is a retail industry established in 1982 at north shore New Zealand .It was founded by Stephen Tindal and chief executive officer is mark Powell. It operates around 241 retail stores along with 2 distribution centre’s located in wiri and rolleston and also 12 online stores. It provides a products includes clothing ,entertainment ,technology ,music ,sports equipment ,gardening ,grocery and many others .It is a business to customer business model. It provided the employment opportunity over 12000 people. Apart from its own operation it owns various brands which are located within the stores. It became popular by money back guarantee policy. It is operated within New Zealand firstly and then expanded to Australia but due to heavy competition and under performance it sold to catalyst investment managers and renamed it as a sam’s warehouse. Warehouse group owned 5 subsidiaries i.e warehouse stationary,torpedo7 group ,warehouse group financial services limited ,noel leeming group limited ,Waikato valley chocolates .Warehouse sell as many different items possible. In 1995 the warehouse added to New Zealand stock exchange with security code WHS, warehouse is added to New Zealand 10 index. Its main competitors including farmers, k-mart ,the briscoes group ,super cheap auto. As same as wall-mart , warehouse was the first store to provide an in store bakery ,pharmacy and café at Sylvia park. It also started its smaller concepts store. It also been