Explain and research 5 porter analysis of Costco company. 1. Threats to new entrances: economics of scale
Question:
Explain and research 5 porter analysis of Costco company.
1. Threats to new entrances: economics of scale is hard to directly compete with Costco. Large investment can be a moderate barrier to start up. Low switching cost is easy for guest to change retailors.
2. Threats of substitutes: strong: high performance to price ratio, high availability of substitute as majority of products aren't unique to Costco, low switching cost: easy for guest to change retailer.
3. Competitive rivalry: strong large number of firm market is saturated with competitors, hight variety of firms competitors can be specialized.
4. Bargaining power of supplier: work big population of suppliers single supplier doesn't affect the business, large supply overall, low forward integration business don't have control over merchandising.
5. Bargaining power of buyers: strong as low switching cost customer can choose where to shop, high availability of substitutes product availability from multi sources, high quality of information internet access to price and options.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr