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.