GSL 2014-01 Case 1
The Shopping center management is property management industry, they involved to building shopping center and management of shopping center in Australia.
Porter’s 5 Forces:
Threat of substitutes: the online shopping is a threat of shopping center to reduce shopping in physical store. That will reduce the demand of shopping center’s space and rental income.
Threat of Entry: the barrier to entry the shopping center building and management industry is high, the capital requirement to entry the shopping center building and management industry is high and it becomes barrier of entry.
Threat of buyer is low. The retail store owners had low bargaining power to shopping center owners or management companies in rental.
Threat of supplier is low. Usually the shopping center owners also is the management companies owners.
The Competitive Rivalry is medium. The shopping center owners will reacting to rivalry’s new actions but usually stable rental increase rather than rental decrease.
- The political environment dose not against online shopping but not help the shopping center
- Online shopping may find the same products or goods from overseas but in cheaper price than shopping center. - Technology improvement made the shipment cost lower which may lower than rental cost of shopping centre. - Greater product range means more choice to customer then more competitive than shopping centre. - Global Financial Crisis force US business looking for new market to maintain revenue and growth opportunity. Online shopping is one of the lowest cost channel for market expansion. - Online shopping is one of the method which can help manufacturer direct approach customers, the saved margin for retailer can give to customers or let manufacturer get more. - Online shopping can break the regional boundary and become a global market. - The purchasing power of generation Y increased in recent years and...
Please join StudyMode to read the full document