Poters Five Forces

Rivalry-Target.com.au seems to be like a site which has a lot of competitive rivalry, because the market in which it operates is very broad, and there are many existing competitors. “Target.com.au” is only operational within Australian territory. On another hand a potential competitor such as amazon has worldwide coverage and provide . This makes the competition very high. There are 1000’s of other sites which look the same and provide the same retail goods.

References: http://www.target.com.au http://www.amazon.com

Threat of new entrants-Barriers to entry is very low, since there are readymade platforms available for people to create their own website without any issues. A new online shopping store can be setup with much less hassle than a retail store therefore anyone can come up with similar products.

Bargaining power of suppliers- Bargaining power of the supplier is high, since there are so many sites which sell goods online one site cannot demand for specific prices, thus the supplier has more bargaining power. Target.com.au has wide variety of goods which are supplied by unique suppliers.

Bargaining power of the customer- the customer has a wide range of online stores to shop from, the greater the number of competitors the higher the bargaining power of the customers. The customer is in a position to bargain with the retailer if the retailer does not comply for the customer’s needs the retailer risks losing the customer.

Threat of substitute- there are many different substitutes available to the customer which is a huge risk to the retailer. The greater the no. of substitute the greater the threat. If the customer is unhappy with the products and services given by target.com.au then the customer has the option of choosing amazon.com.Based on the key factors such as the products and services provide by target.com.au eg. Clothing of men’ wear women wear etc. accessories . and the prices which are labeled for products its target.com.au. is

References: http://www.target.com.au http://www.amazon.com Threat of new entrants-Barriers to entry is very low, since there are readymade platforms available for people to create their own website without any issues. A new online shopping store can be setup with much less hassle than a retail store therefore anyone can come up with similar products. Bargaining power of suppliers- Bargaining power of the supplier is high, since there are so many sites which sell goods online one site cannot demand for specific prices, thus the supplier has more bargaining power. Target.com.au has wide variety of goods which are supplied by unique suppliers. Bargaining power of the customer- the customer has a wide range of online stores to shop from, the greater the number of competitors the higher the bargaining power of the customers. The customer is in a position to bargain with the retailer if the retailer does not comply for the customer’s needs the retailer risks losing the customer. Threat of substitute- there are many different substitutes available to the customer which is a huge risk to the retailer. The greater the no. of substitute the greater the threat. If the customer is unhappy with the products and services given by target.com.au then the customer has the option of choosing  amazon.com.Based on the key factors such as the products and services provide by target.com.au eg. Clothing of men’ wear women wear etc. accessories . and the prices which are labeled for products its target.com.au. is more likely to be a “low cost across the industry” and with a focus of better product and service within an industry segment.