Camberwell's Four-Threat Of Substitutes
4 - Threat of Substitutes = HIGH
Threat of substitutes is the measure of availability that consumers can purchase goods/services other than the ones provided which offer similar benefits. Threat of substitutes for Camberwell’s retail strip is quite high as there are many other possible retail strips located in other suburbs a customer could venture to; and as mentioned during the analysis of ‘the threat for new entrants’ online competition for these retail strips are also abundant. Not only that, there are other larger retail centres customers could substitute retail strips with.
5 - Intensity of Rivalry = HIGH
Intensity of rivalry is best depicted by the extent to which businesses compete for the profit of other businesses in similar industries.
This rivalry encompasses both goods and services replications followed by the probable substitutes. Given the compactness of Camberwell’s retail strip and the centralised location it holds in Melbourne followed by the potential threat for online retailing, Camberwell’s retail strips has a high level of industry rivalry.
Competitor Analysis
The 3 I’s
In analysing the Camberwell shopping strip competitors, it needs to identify the key customers and obtain the competitor data that indirectly compete with the business or one that offer products and services that are similar in the same market. Based on our analysis, the key customers of Camberwell shopping strip consist of local resident and other suburbs including Collingwood, Richmond, Malvern and Toorak (Boroondara 2014).
Immediate competitors
Immediate competitors refer to a major player within the specific industry.
Chadstone shopping centre, being one of the major players, offers customers up to approximately 500 stores, which differs from fashion to entertainment, and dining experiences. It’s currently going under a $540 million dollar redevelopment, where they’re looking to enhance the presence by bringing in more retail stores, car parks and additional seating areas in the food courts (Campbell, Johnston, 2014). In addition, they’re also planning to improve traffic congestion by developing a new bus interchange system, where approximately an additional million customers are expected to use the service (Di Nuzzo, 2015).
Westfield Doncaster own up to approximately 400 stores, where they distribute both premium and middle end branded products to their targeted audience. According to O’Byrne (2015), Westfield Doncaster is aiming to go into a redevelopment to create additional car parking spots, to compete with their competitors, as other major shopping centres such as Chadstone, Eastland and Westfield Knox are all going through half a billion redevelopment.
Threat of substitutes is the measure of availability that consumers can purchase goods/services other than the ones provided which offer similar benefits. Threat of substitutes for Camberwell’s retail strip is quite high as there are many other possible retail strips located in other suburbs a customer could venture to; and as mentioned during the analysis of ‘the threat for new entrants’ online competition for these retail strips are also abundant. Not only that, there are other larger retail centres customers could substitute retail strips with.
5 - Intensity of Rivalry = HIGH
Intensity of rivalry is best depicted by the extent to which businesses compete for the profit of other businesses in similar industries.
This rivalry encompasses both goods and services replications followed by the probable substitutes. Given the compactness of Camberwell’s retail strip and the centralised location it holds in Melbourne followed by the potential threat for online retailing, Camberwell’s retail strips has a high level of industry rivalry.
Competitor Analysis
The 3 I’s
In analysing the Camberwell shopping strip competitors, it needs to identify the key customers and obtain the competitor data that indirectly compete with the business or one that offer products and services that are similar in the same market. Based on our analysis, the key customers of Camberwell shopping strip consist of local resident and other suburbs including Collingwood, Richmond, Malvern and Toorak (Boroondara 2014).
Immediate competitors
Immediate competitors refer to a major player within the specific industry.
Chadstone shopping centre, being one of the major players, offers customers up to approximately 500 stores, which differs from fashion to entertainment, and dining experiences. It’s currently going under a $540 million dollar redevelopment, where they’re looking to enhance the presence by bringing in more retail stores, car parks and additional seating areas in the food courts (Campbell, Johnston, 2014). In addition, they’re also planning to improve traffic congestion by developing a new bus interchange system, where approximately an additional million customers are expected to use the service (Di Nuzzo, 2015).
Westfield Doncaster own up to approximately 400 stores, where they distribute both premium and middle end branded products to their targeted audience. According to O’Byrne (2015), Westfield Doncaster is aiming to go into a redevelopment to create additional car parking spots, to compete with their competitors, as other major shopping centres such as Chadstone, Eastland and Westfield Knox are all going through half a billion redevelopment.