Ace Hardware Analysis
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.
• Easy payment.
• 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.
• Strategic location.
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
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.
• Easy payment.
• 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.
• Strategic location.
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