Threat of new entrants: The presence of new businesses in the same field as MYER shows very clearly MYER is a very large store chain with a very wide choice of products, this makes difficult for new entrants, although able to compete on the same platform (online), to keep up. Most new entrants will not offer the choices and options (in terms of added services like delivery, packaging, promotions) that are available through MYER stores. The MYER website is also very well designed and easy to access; this provides MYER a great competitive advantage as their site is modern and fully functional, MYER is set to have a clear competitive edge, the product range and options of MYER are also presented very coherently to a niche identity, I personally …show more content…
I would implement a SCM system to create a tighter relationship with suppliers to make it more difficult for a new entrant to break into the market. When a new company attempts to break into the market, I would retaliate by offering price reductions to our consumers and their consumers too. As CIO I would utilize the internet to gain a competitive edge on new and old entrants to the market. The internet would allow me to reach suppliers across geographical boundaries that where impossible to reach before. . Bargaining Power of buyers: Now really the presence of the internet and its social aspect, it is very possible to persuade a large number of customers to start buying a cheaper product from competitor or even switch products due to certain public influence (public statements, faults on the website, boycotting etc.). MYER uses social media, does online promotions & offers numerous vouchers (a google search told me how to win a $500 voucher) to keep the customers not only satisfied, but interested in their product offerings. Other movements like group buying or couponing can be implemented here through the website. Also the use of ERP, CRMs & SCM to lower costs and provide better