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Porters Five Forces: Potential Entrants: In the furniture retail industry there are minimal barriers to entry. However, the intensity of competition may deter potential entrants from entering the market as currently the market is saturated. Anyone can open a retail shop with a small injection of capital, however, if they wish to compete with the major players such as IKEA; then the firm needs a substantially high injection of capital. They will need large amounts of capital in order to establish contacts with suppliers, build relationships with consumers, develop a superior supply chain, create a unique brand name and employ a highly skilled workforce. Since there are such minimal regulations, the threats of new entrants is high, however, there is no immediate threat to IKEA as the intensity of competition is too high for potential entrants to overcome. Suppliers: The bargaining power of IKEA’s suppliers is significantly low as they are constantly competing to uphold their relationship with IKEA as numerous factories worldwide have the capabilities and resources to form strategic par...

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