Question

Hi, can you answer this question in more detail?

Subject: Business Policy and Strategy

The G2000 Group was founded by Michael Tien in 1980 in Hong Kong. The label G2000, first introduced in 1985, was positioned as a specialty clothing chain distributing fashionable men’s and women’s career wear. Today, the G2000 Group is a multi-brand specialty retailer offering an assortment of men’s and women’s apparel and accessories, operating under different labels: G2000 MAN, G2000 WOMAN, G2000 studio, BLAACK and At Twenty.

(A)

As for the situation analysis of G2000 company, it involves the following topics, shows your theoretical understanding, and adopts RBV-VRIN to conduct internal resource evaluation for the local market of Hong Kong.

(Words: 700 Don’t direct copy)

• Value
• Rarity
• Imitability
• Non-substitutability

Answer 1

As for the situation analysis of G2000 company, it involves the following topics, shows your theoretical understanding, and uses Porter's 5 forces to analyze the external environment for the local market of Hong Kong.

• Threat of new entrants
• Bargaining power of buyer
• Bargaining power of supplier
• Threat of substitute product
• Intensity of rivalry among competitors

Threat of new entrants

The training of the staff is not sufficient because they usually employ some part-time.

The sales may be decreases under current financial crisis.

Many competitors extend the discount period to attract the customer during financial crisis.

Bargaining power of buyer

The price of products is expensive.

Many competitors like “Bossini” and “Giordano” have a lower price than G2000.

Bargaining power of supplier

Supplier concentration.

Price and quality of different products.

Threat of substitute product

ome competitors are going out of the business during the financial crisis, like “U-right” and “Giordano”.

Relative price and quality of substitute.

Witching costs to buyers from other competitors.

Intensity of rivalry among competitors

The quality of the G2000 product is higher than other brands

The branches of G2000 are all over Hong Kong and China

Product differentiation can get a high competitive advantage

Exit barriers

Strategic stakes

The G2000 Group expands their business.