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TOWS analysis for the electronic retail store “Neptun shops”

Internal FactorsExternal Factors | Strengths (S) 1. Well-known brands 2. High quality productsand service. 3. After sale service | Weaknesses (W) |

Opportunities (O) 4. Market growth in Albaniaand neighbor countries 5. Biggest market share. 6. | SO strategies | WO Strategies |

Threats (T) 1. Fierce competition 2. | ST strategies | WT strategies |

Porter’s Five Forces Model

Although the Albanian Consumer electronics market is highly competitive, the high growth rates that it promises make it a good industry to enter.

Threat of New Entrants

In the case of retail stores, there is lack of good distribution network and lack of knowledge of consumer buying patterns which calls for large investment in distribution channels and research to improve the reach.

Economies of scale is required in as there are large fixed costs associated with setting up a manufacturing plant as there are problems of under-developed infrastructure, erratic supply of water and electricity in many areas, a high cost of capital and continuous up gradation of technical and managerial skills.

Supply Chain Issues:

The existence of too many intermediaries in the supply chain coupled with issues in logistics, management of POS data, pilferage and distribution and inventory management, eats away the profits of the retailer, making it unattractive for new entrants.

Product Differentiation:

Though the awareness is increasing amongst the Albanian consumers, retailers are unable to increase brand loyalty. The Albanian consumer is very price sensitive and hence he keeps hoping from one place to another, hunting for good deals.

Switching costs vary amongst the electronic categories. For instance, the switching costs in mobile phones are high, as consumers who are used to one brand find it difficult to use another brand. However, for televisions,...