Assignment Task 2:
Porter’s Five Forces Analysis: Porter’s five forces analysis explains the factors that put an impact on the competition in the determined industry or market. There are the five main factors that affect the competition in the different aspects of the market and disturb the actual working. Here are these porter’s five forces.
1. The Threat of Substitute Products: In the competitive market, there is always a threat to the seller about the substitute that if he will increase the price then the customer will definitely move towards the similar products or substitutes of that product. This thing keeps the sellers too much attentive about the customer’s satisfaction in the market competition so that his customers may not switch …show more content…
Anyhow customers like to buy the cheaper products so they mostly try to visit the Sports Direct and through this strategy Sports Direct beat its competitors. Sports Direct has another edge over its rivals that it is offering the brilliant services to the customers at the lower prices. Even Sports Direct is offering the delivery facility to the customers at the cheaper rates. Through these strategies, Sports Direct is playing well in such a crucial competitive market. What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous …show more content…
Bargaining power of customers means that customers can put the company under their pressure regarding the price and it also affects the price sensitivity of the customers when it changes. In the sports industry, the bargaining power of the customers is very high because of the wide range of the products and a large number of the sellers in the market. The other reason for this is that the customers have low budgets for the products and price sensitive. If Sports Direct will not entertain its customers according to their demands and bargaining price then they will definitely move towards the other substitutes available in the market like the JD Sports and
Porter’s Five Forces Analysis: Porter’s five forces analysis explains the factors that put an impact on the competition in the determined industry or market. There are the five main factors that affect the competition in the different aspects of the market and disturb the actual working. Here are these porter’s five forces.
1. The Threat of Substitute Products: In the competitive market, there is always a threat to the seller about the substitute that if he will increase the price then the customer will definitely move towards the similar products or substitutes of that product. This thing keeps the sellers too much attentive about the customer’s satisfaction in the market competition so that his customers may not switch …show more content…
Anyhow customers like to buy the cheaper products so they mostly try to visit the Sports Direct and through this strategy Sports Direct beat its competitors. Sports Direct has another edge over its rivals that it is offering the brilliant services to the customers at the lower prices. Even Sports Direct is offering the delivery facility to the customers at the cheaper rates. Through these strategies, Sports Direct is playing well in such a crucial competitive market. What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous …show more content…
Bargaining power of customers means that customers can put the company under their pressure regarding the price and it also affects the price sensitivity of the customers when it changes. In the sports industry, the bargaining power of the customers is very high because of the wide range of the products and a large number of the sellers in the market. The other reason for this is that the customers have low budgets for the products and price sensitive. If Sports Direct will not entertain its customers according to their demands and bargaining price then they will definitely move towards the other substitutes available in the market like the JD Sports and