Competitive Analysis of Metro Holdings Ltd Essay -- Business Analysis

1.IntroductionMetro Holdings Ltd is a multi-national company that operates two major(ip) business segments, namely Property Development and Investment, and Retail. This report explores the retail section of Metro, which manages three discussion section stores and four distinctiveness accessorize stores in Singapore, and another fiver incision stores in Jakarta and Bandung, Indonesia.2.Competitive Environment of Metro LtdThe agonistic 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 tempt the competition faced by the business. As the nature of department stores and specialty accessorize stores is vastly different, the report would focus on the analysis of department stores which accounts for a bigger portion of the companys income and presence in the industry.2.1 holy terror of New EntrantsThe threat of new entrants is relatively low in the department stores industry.De partment stores do not manufacture products nor create their own brands of merchandise, their products are not differentiated. As a result, consumers have low switching costs, customer loyalty is low, as they can easily purchase similar products elsewhere. These scorn the barriers to entry, allowing new entrants a chance to gain customers. On the other hand, almost factors prove otherwise. The retail industry does not have high Economies of racing shell to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and useable expen... ...Michael Porters Five-Force Model. Able to make valid and clear conclusions or so the competition faced by the business, based on the analysis.Demonstrate a clear understanding of the business and the actual env ironment 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 circularize & 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/capital of Singapore/expat_guide/910/singapore_aims_to_achieve_65mil_populati on.php Eng, P., Accounting for Indonesias economic growthRecent past and earnest future