A small player will also require strong relation with suppliers and efficient manufacturing processes otherwise they could not produce at low cost.
Sony is currently the 4th rank in ‘The 100 Most Loved Companies’ by APCO worldwide (APCO) and it is also one of the top 10 Best Global Green Brands that consumers associate with environmental conservation and sustainable business practices. This may entice consumers to be loyal to Sony brands and attract new buyers …show more content…
Although Zappos have a huge market share and high customer loyalty, they're still under threat by the sheer amount of choice a customer has from their competitors which leaves them slightly vulnerable. This leads to the company dropping its prices in an attempt to keep existing customers and attract new …show more content…
Again, consumers have very high bargaining power here due to the wide range of products available that fulfil the same need (LCD TV from Sony is very similar to a similar TV from Samsung). This means Sony has to spend more time on innovation to stay ahead of the market in order attract new customers, while keeping the customers they already have.
Bargaining Power Of Suppliers
With both Zappos and Sony the bargaining power of suppliers goes to the company that support and supplies products or parts to Zappos and Sony. There are a lot of suppliers that sells shoes, clothing and electronic parts to online retailers which means they have to offer competitive prices to the likes of Zappos and Sony. These companies rival with each other lower and lower prices which benefits the retailer and in turn the customer, therefore the bargaining power of the supplier is very low.
Intensity Of Competitive Rivalry
Zappos' market segment includes Woman's shoes, Men's Shoes, Kids Shoes, Women's Clothing, Men's Clothing, Kids Clothing, Bags and Handbags and Accessories. For the past 15 years, Zappos existing competitors have been Footlocker and J.C. Penney Corporation