Competitive Analysis of Metro Holdings Ltd Essay -- Business Analysis

1.IntroductionMetro Holdings Ltd is a multi-national society that operates two major business segments, namely Property Development and Investment, and retail. This survey explores the retail arm of Metro, which manages three department stores and four specialty accessorize stores in Singapore, and another five department stores in Jakarta and Bandung, Indonesia.2.Competitive purlieu of Metro LtdThe competitive environment of Metro Holdings Ltd would be evaluated based on Michael Porters 5 forces Model. The factors affecting each force would be critically analysed to determine the competition faced by the business. As the temper of department stores and specialty accessorize stores is vastly different, the report would focus on the digest of department stores which accounts for a bigger portion of the companys income and comportment in the industry.2.1Threat of New EntrantsThe threat of new entrants is relatively gloomy-down in the department stores industry.Department store s do not manufacture products nor score their own brands of merchandise, their products are not differentiated. As a result, consumers defy low switching costs, customer loyalty is low, as they can easily leveraging similar products elsewhere. These lower the barriers to entry, allowing new entrants a chance to gain customers. On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is unimaginable to run department stores like Metro on a refined scale . A large retail space, inventory, and warehouse are undeniable to host a specialized portfolio of brands and products to better attract both customers and suppliers. fleshy capital requirements and operational expen... ...Michael Porters Five-Force Model. Able to make legitimate and clear conclusions about the competition faced by the business, based on the analysis.Demonstrate a clear understanding of the business and the actual environmen t it operates in.Works Cited https//www.metro.com.sg/storefront/ContentDetail/AboutUs3.asp?ContentId=458 http//digilander.libero.it/fschivardi/images/schivardiviviano.pdf Charles A. Ingene, Scale Economies in American Retailing A Cross-Industry Comparison Engle, J., How to Open & Operate a Financially Successful Retail Business http//secure-online-purchasing.suite101.com/article.cfm/the_growth_of_internet_shopping http//www.streetdirectory.com/travel_guide/singapore/expat_guide/910/singapore_aims_to_achieve_65mil_populati on.php Eng, P., Accounting for Indonesias economic growthlate(a) past and near future