Industrial background for home improvement
Most people especially in big cities would like to have a nice place to buy things for their home. They actually need one stop shopping place for their home. Just like a hyper mall which is provide them as a place called one stop shopping for their needs. Actually for this kind of industries, this is a very high competition in it. With potter 5 forces analysis we can see that this is a tough industry. Bargaining power of customer...
Customer could easily to buy in other store or they could search by them self in market. •
Sometimes one store is not enough to satisfy the customer. •
Buyer is a price sensitive and brand minded, once they didn’t found what they looking for, then they didn’t want to go back to that store. •
The availability for the goods is very important to satisfy the customers. •
Strategic location is important for customers.
Information about the products, what kind of products, how to use the products, how to repacking the products, etc.
Bargaining power of supplier...
Supplier should provide the same kind of goods with the same quality and quantity. •
The store will cut their order, ones the supplier could not fit with their criteria or standard. •
Good supplier always provide the expert to explain about their product. Just like a manual books. The Threat of Substitute product
The availability and the cost are the most reason for customer to find the substitute product. •
The variants of the products.
The threat of the entry of new competitors...
The capital to build this kind of store is quite average. •
Good network among the customers, stores, and vendors is very important. •
A huge space should be provided to satisfy the customers to get the ‘one stop shopping’ experience. •
Good strategic location could give you some cost advantages. Although strategic location always expensive. •
Every store which could give the best value for the products will win the hearth of the customers. The Intensity of competitive rivalry...
There are a lot f store which provide the home improvement goods, although they are not in a one store, but sometimes they can be found in the same area or location. •
The same concept of the store, which provide the same services, sell the same kind of products are exist in the market. •
Although the rivalry among them quite though, but each of the store still grow.
One stop shopping concept is a trend in the market. First only the department store or a hyper mall which have that concept. People just only have to come to one place in order to get all they want, they could buy some clothes, foods, and also they could enjoy the place, the view and the environment. In 90’s this concept were adopt for the home improvement goods. This concept could fulfill the customers needs for their home. They didn’t have to go to different place in order to get some stuff for their home, they just came to one store which provide all their needs. Actually, the older ‘one stop shopping’ concept in Indonesia was not a new thoughts. We know the place like Kenari Djaya, Pasar Glodok, Harco Mangga Dua, etc, as a place to find what we want in order to improve our home. The differences with the newly concept, that the old one, there were so many stores in one place just like Kenari or Glodok, and every store sell the different kind of goods, but the new one is only one store which provide all. Nowadays the customers need a comfortable place to buy the goods for their home improvement. They dislike to walk in a narrow space, and still have to bargain about the price, then they must compare the price among each store which sell the same products. Sometimes all the store have the same price because they have the same owner. They need a fixed price, good quality, availability, a bigger place, a wide space, a comfort area and a trained sales person.
About the ACE HARDWARE...
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