APPENDIX $2$ Draft external analysis $$ HML

Area Aspect Issues, forces or trends

$($as appropriate$)$

Explanation

$($as appropriate$)$

Industry

forces

Suppliers and

other value chain

actors

Scrutiny from competition authorities.

Anti$-$competitive behaviour being

investigated by Australian regulatory

authorities.

Suppliers are becoming more

concentrated $($i$.$e$.,$ larger, and more

powerful$).$

Could lead to shortage of product or

price increases.

Stakeholders

Increasingly difficult to retain

knowledgeable employees.

HML directors believe that the

business relies partly on

knowledgeable staff to provide

personalised service.

Environmental groups have commented

on HML$$s poor sustainability practices.

If these concerns are founded, then

this would be contrary to HML$$s

mission and vision.

Trade unions have expressed concern

at the pay$-$rates for some of HML$$s

employees.

If these concerns are founded, then

this would be contrary to HML$$s

mission, vision and core values.

Competitors

$($incumbents$)$

Large, 'big box' competitors.

Competition between the large

competitors could be intense,

resulting in smaller retailers going

out of business.

Continued expansion of large

competitors.

Continued expansion of the large

competitors will exert additional

pressure on smaller businesses.

New entrants

$($insurgents$)$

This industry requires significant

investment in retail infrastructure,

inventory, scale and branding, as well

as efficient sourcing of product making it

hard for new entrants.

Competition and barriers to entry will

make it more difficult to establish a

profitable presence, therefore

deterring new entrants.

Substitute

products and

services

Each player in the industry offers some

unique products.

By offering unique products each

market participant could have some

customers 'locked$-$in$\text{'}$ to their

business.

Key trends

Technology

trends None noted. N$/$A

Regulatory trends

Minimum level of regulation relating to

the retail industry.

Retailers must ensure that they

meet the regulatory requirements for

competition law, health and safety,

employment, building regulations,

etc. There is nothing unique to this

industry relating to regulation.