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The South Africa Ackerman Retail Store Using Porters Five Forces Model

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Michael porter`s five forces model Analyzing the South Africa Ackerman Retail Store using Porters Five Forces Model. The Porter`s five forces are threats of new entrants, the bargaining power of buyers ,product substitution and intensity of rival of rival among competitors .These forces measure the competitiveness of the market and also helps the company to identify strategies to use to penetrate such and gain market share. Ackerman was founded in 1916 by Gus Ackerman acquired Amen in Wyneberg Cape town .Ackermann was the sold to Greatermans yin 1960 and again sold towards the end of1970 to Edgars .Pepkor acquired Ackermann in 1984,with only 34 stores and since then has experienced exceptional growth and has over 450 stores across South Africa . The most recent South Africa retail stores were opened towards the end of 2014 1 Botswana, 1 Namibia, 2 KwaZulu-Natal and 2 Gauteng. Threats of new entrants: Economies of scale Ackerman’s is a high manufacturing company that make use of its operational costs on a large scale ,this is something that new entrants on a small scale would not have .Economies of scale are achieved when production is increased in a given period of time .A large number of units are produced when it offers assortments of more styled items including the well-known national and international brands during the Star Deals .The low unit cost makes it difficult for the small new comes to break into the market to compete effectively
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