Comm 200 A2

Assignment #2

1. Rivalry among existing competitors – Within Quebec there are many different types of competitors. Depaneurs and convenience stores that once sold only quick stop items as well as alcoholic beverages must now expand their shelves for more common food items to draw people in the store for convenience purposes perhaps in more rural areas. This is all in response to the supermarkets bringing in alcohol and specialty items for a one-stop-shop environment. This is also to eliminate all of the small stores from the industry.

Threat of new entrants – With the strong positioning of these major supermarkets I think that the treat of new entrants would be significantly low due to major competition and elimination due to low sales.

Threat of substitute products or services – A threat of new and upcoming organic and eco friendly products might rule out the old harmful products and specialty items might affect the markets.

Bargaining power of suppliers – Our suppliers have a great influence on our cost base unlike Wal-Mart or Costco where these stores will get the products for a reduced price if they buy a certain amount of units. As for a high competing supermarket in order to stay superior to competitors and preserve profitability they will either have to suffer a margin decrease for profit – or ask for a reduced cost from the supplier.

Bargaining power of buyers – Within the supermarket industry I find it particularly difficult to find a variation in costs from store to store due to the competition of market shares and basket value per unit goal. This giving buyers a lot of choices in stores and places to purchase their needed brands and supplies, in order to overcome this – the store must become unique and create a quality shopping experience for their loyal customers.

Rivalry against existing competitors scares me the most, just as we are trying to create a positive and most efficient shopping experience so are the competitors...