Question

In: Operations Management

Ascena: Odds of Survival in Speciality Retail (case 33) Porters Five Force Model 1. Threat of...

Ascena: Odds of Survival in Speciality Retail (case 33)

Porters Five Force Model

1. Threat of New Entrants?

2. Bargaining Power of Buyers?

3. Bargaining Power os Suppliers?

4. Threat of Substitutes?

5. Intensity of Rivalry?

Solutions

Expert Solution

Ascena: Odds of Survival in Speciality Retail

Porters five forces analysis -

Threat of new entrants -

  • Threat of new entrants is very high for apparel stores.
  • Any new store in the same line with new innovation and ideas will act like a threat to the company.
  • New entrants may bring new ways of doing things, bringing out lower pricing strategies can put high pressure on the company.
  • Ascena have to build its economy very strong.
  • The company have to make their strong base of customer loyalty.

Bargaining power of buyers -

  • It is also high for this case.
  • Buyers have many options in apparel stores.
  • Buyers will always choose best offering by paying minimum price.
  • Switching cost is very much high.

Bargaining power of suppliers -

  • Bargaining power of suppliers is very high as apparel store buy their raw materials from different suppliers.
  • Ascena have to build a very strong relationship with multiple suppliers.

Threat of substitutes -

  • It is also very high. As many companies are highly focused on uniqueness and innovation.
  • Any services or product which will provide better and unique offering in comparison to present offering then threat of substitutes will be high.
  • For this ascena have to much more focused on their service and innovation

Intensity of rivalry -

  • Intensity of rivalry is very high as there is already many competitors in the market for the field.
  • For overcoming this, ascena have to provide something new and best to the market.

Related Solutions

Fully discuss the Threat of Entry in Porters Five Forces Model. How would you incorporate it...
Fully discuss the Threat of Entry in Porters Five Forces Model. How would you incorporate it into a Porter’s analysis of an industry?
Porters five forces model analysis on Uber How does Uber develop and implement a business strategy...
Porters five forces model analysis on Uber How does Uber develop and implement a business strategy to deal with the Porters five competitive forces? Create one strategy for Uber that fit its business model. A strategy in SWOT is a specific action for the business to take. It comes from combining one or more internal factors with one or more external factors.
Prepare Porter's five force model of dairy industry in India
Prepare Porter's five force model of dairy industry in India
Choose a major company and apply the five forces of Porter’s five force model. Assess the...
Choose a major company and apply the five forces of Porter’s five force model. Assess the attractiveness of the industry that the firm is in and the firm’s opportunities and threats to its sustainability.
Review Porter's Five-Forces Model in Chapter 3.  Evaluate each force in the model as either a weak,...
Review Porter's Five-Forces Model in Chapter 3.  Evaluate each force in the model as either a weak, moderate or strong competitive force based on the criteria in the text and PPs and within the context of your general knowledge of the world-wide automobile industry.  Based on your evaluation, give an overall assessment on the intensity of competition (either weak, moderate and strong) in the world-wide automobile industry. Hint: as your text indicates, the rivalery among competing sellers, in the center of the...
Retail Store Deluxe Standard 1 44 33 2 43 30 3 41 28 4 33 20...
Retail Store Deluxe Standard 1 44 33 2 43 30 3 41 28 4 33 20 5 32 19 6 42 30 7 43 33 8 30 18 The selling prices (in $) for the deluxe and standard model Ryobi wood sanders are shown for a sample of eight retail stores. Does the data suggest the difference in average selling price of these Ryobi models is more than $10 at α=0.01? For the hypothesis stated above (in terms of Deluxe...
Within the framework of the Five-Forces Model of Competition, describe the competitive force of buyer bargaining...
Within the framework of the Five-Forces Model of Competition, describe the competitive force of buyer bargaining power. What are some of the factors that influence the degree of buyer bargaining leverage? What competitive conditions would give buyers the maximum bargaining power in an industry?
Using porter five force model explain how strong is the existing rivalry competition of the sportswear...
Using porter five force model explain how strong is the existing rivalry competition of the sportswear industry? Explain why you answered the way you did. How strong is the threat of new entrants of the sportswear industry? Explain why you answered the way you did. How strong is the bargaining power of buyers of the sportswear industry? Explain why you answered the way you did
Prepare Porter's five force model of dairy industry in United States. Course- managerial economics
Prepare Porter's five force model of dairy industry in United States. Course- managerial economics
Analyze Porter's Five Forces to determine profitability in the Apparel industry. 1. Threat of new entrants...
Analyze Porter's Five Forces to determine profitability in the Apparel industry. 1. Threat of new entrants 2. Buying Bargaining Power 3. Supplier Bargaining Power 4. Threat of substitutes 5. Rivalry Intensity Then analyze what Nordstrom's competitive advantages are
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT