Analysis Of 4t's Clothing And Consignments

710 Words 3 Pages
4T’s Clothing and Consignments is new to the resale and thrift industry. Using Michael Porter’s Five Forces to explore potential threats. Competitive rivalry and supplier power can negatively affect the company’s profits. Then there’s buyer power and the threats of substitutions, which can also have an impact. Finally, new entry can affect profits. Using Porte’s five forces can help combat the negative benefits that can impact 4T’s Clothing and Consignments by addressing the competitive rivalry, supplier power, buyer power, the threat of substation, as well as, the threat of new entry.
Competitive rivalry affects a company profit. More than five brick and mortar competitive rivalries are within a five-mile radius of 4T’s Clothing and Consignments. Online thrift store and private customers selling goods is another threat to the company. Then there are individuals who have yard sales to get rid of old things and make some money on the side. The impact of this can be negative taking away from the
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I found competitive rivalry such as other resale stores and online selling can have a negative impact on profits. The supply power is positive because the company determines where merchandise is acquired and its’s cost (a buyer’s market). Buyer power controls prices of inventory through supply and demand. Two additional threats are the threat of substitution and new entry threat. The threat of substation isn’t great because 4T’s Clothing and Consignments are the threat to retail by selling demanded goods at lower prices and the new entry threat is high because of low entrance cost. There are both negative and positive forces which can affect a company such as competitive rivalry, supply and buyer power as well as the treat of substation and new entry but researching and using this information can help ensure 4T’s Clothing and Consignments

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