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Sears Porter's Five Forces Analysis

453 Words2 Pages

Threat of substitutes -High Customers demand products that are of high quality hence the Sears must increase product differentiation in order to compete in the market. Therefore due to close substitutes of products offered by competitors they must improve quality and lower the prices in order to meet customer satisfaction. Rivalry among competitors- High. Rivalry and industrial competition is evident due to product differentiation and lowering of prices to suit consumer preferences. Stiff competition leads to higher innovation among the companies in order to dominate the market share, which in this case leads to improved quality of products. Buyer’s power -High. Buyers of the products are satisfied with a certain product after comparing the …show more content…

This can be dealt with in the following ways: access of inputs from many suppliers, the presence of substitutes, less concentration of suppliers, charging high costs to industrial purchases, high quality of inputs. This increases the supplier power over the inputs. Company Analysis Sears holding is growing smaller with only 1,400 retail stores in the US. It conducts its business through several subsidiaries including Roebuck and Company, and Kmart with brands such as Kenmore and Diehard. Despite its decreasing market share it is still the largest provider of home appliances and repairs in the US. Currently, the Company has been forced to dispose most of its assets and close many of its stores due to high costs of operations and great losses made. Weaknesses Lack of product differentiation: Sears Holdings has majored on opening many stores across the US instead of focusing on product differentiation to improve the quality of products in these stores. This has led the company to lose its market share to its

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