Coach Porter's Five Force
The Men’s Warehouse Case analysis
Background/problem statement
The Men’s Warehouse is a leading off-price specialty retailer of men’s tailored business clothing. George Zimmer developed its own culture, management theories and practices making the company a success. However, the external environment of this industry is fiercely competitive. So the strategic issue in this case is how Men’s Wearhouse could keep high-paced development in this stagnant industry.
Strategic analysis & options
Porter’s Five Forces Analysis of Men’s Warehouse: * The bargaining power of buyers is high because the competition of men’s clothing retailers is fierce. Men’s Warehouse is using an off- price policy * The bargaining power of suppliers is medium because merchandise is very essential to a retailer; however, there are a lot of manufacturers for the Men’s Warehouse to choose to cooperate with. * The threat of new entrants is high because it’s easy to open a men’s clothing retail store. There’s no need to make much investment. * The threat of substitute products and services is low because casual clothes are daily necessity, and formal clothes are also indispensable in special occasions. * The intensity of rivalry among competitors is high because the men’s clothing industry is a competitive industry, where many chains close or consolidate every year.
Recommendations
* To lower the bargaining power of buyers, the Men’s Warehouse should put more efforts on the quality and variety of its clothes to make them differentiated from competitors. * To lower the threat of new entrants, the Men’s Warehouse should make and keep good relationships with its suppliers, government, and other distribution channels. In that way, it will be hard for new entrants to have the same advantages, such as favorable access to raw material or government subsidies. * To lower the intensity of rivalry among competitors, the Men’s Warehouse should make more
Background/problem statement
The Men’s Warehouse is a leading off-price specialty retailer of men’s tailored business clothing. George Zimmer developed its own culture, management theories and practices making the company a success. However, the external environment of this industry is fiercely competitive. So the strategic issue in this case is how Men’s Wearhouse could keep high-paced development in this stagnant industry.
Strategic analysis & options
Porter’s Five Forces Analysis of Men’s Warehouse: * The bargaining power of buyers is high because the competition of men’s clothing retailers is fierce. Men’s Warehouse is using an off- price policy * The bargaining power of suppliers is medium because merchandise is very essential to a retailer; however, there are a lot of manufacturers for the Men’s Warehouse to choose to cooperate with. * The threat of new entrants is high because it’s easy to open a men’s clothing retail store. There’s no need to make much investment. * The threat of substitute products and services is low because casual clothes are daily necessity, and formal clothes are also indispensable in special occasions. * The intensity of rivalry among competitors is high because the men’s clothing industry is a competitive industry, where many chains close or consolidate every year.
Recommendations
* To lower the bargaining power of buyers, the Men’s Warehouse should put more efforts on the quality and variety of its clothes to make them differentiated from competitors. * To lower the threat of new entrants, the Men’s Warehouse should make and keep good relationships with its suppliers, government, and other distribution channels. In that way, it will be hard for new entrants to have the same advantages, such as favorable access to raw material or government subsidies. * To lower the intensity of rivalry among competitors, the Men’s Warehouse should make more