Topics: Strategic management, Management, Retailing Pages: 2 (386 words) Published: June 19, 2013
Bargaining Power of Suppliers
For an industry like this, the industry is a large scale medium for which goods supplied are dispersed to customers. For an established multinational organisation like TESCO, finding and engaging suppliers would not be an issue, because of the years it would have a large databases and sources of suppliers. Notwithstanding, TESCO has to make use of local farmers and manufacturers as to be corporately responsible to the society and also to cater for the special needs; products and services particular to the Singaporean markets. I believe the supplier power is moderate. Threat of Substitute Products or Services

This element of the five forces doesn’t relate to competition from new entrants, but from products and services that can deliver the same benefits and use. In this industry, they are but few substitutes to the service rendered, food retail. Apart from food services like restaurants, which are seen to generally accompany the food retailing aspect; there is really no substitute. Therefore, the threat from substitute is seen to be weak. Intensity of Rivalry among Firms

For an industry to be seen as profitable, one of the elements to be considered is the competitive atmosphere in the industry. Where they are few companies, like the case of the Singaporean Retail Industry, competition is likely to be intense, in the bid to gain market dominance. With switching costs of consumers, organisations are constantly trying to gain customers’ loyalty. With TESCO’s move into Singapore, I believe the rivalry will step up, because both companies dominating the markets presently serve different markets, and TESCO is a combination of both services, both middle/high class and mass market. Internal Environment

Having considered both the macro environment and the external environment of the Singaporean Retail industry, it’s important to turn concentration on the internal environment of the organisation at this point. The internal...
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