Porter's five forces sports good store

Date Submitted: 11/18/2004 19:02:14
Category: / Business & Economy
Length: 1 pages (343 words)
Porters Five Forces: sports good stores Bargaining Power of Suppliers Supplier bargaining power is likely to be high. *The market is dominated by a few large suppliers rather than a fragmented source of supply, *There is the possibility of the supplier integrating forwards in order to obtain higher prices and margins. *Forward integration provides economies of scale for the supplier Bargaining Power of Customers Customers bargaining power is likely to be high *Switching to an …
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…for exit are high (e.g. expensive and highly specialz- ed equipment) Note: we can state from porter's five forces that it is not a very attractive industry to enter. The competion is high and survival rate is low. In Boston, there are more that 50 stores, making it harder for a new one to enter this field. The suppliers have a strong hold over the market with customers having their own brand preferences and loyalty.
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