Industry Analysis Department Store
Department Store Industry
NACIS 452111
Table of Contents
Introduction…………………………………………………………………………….………… 3
The Industry’s Dominant Economic Features……………………………………………………………..……………………….…… 3
Porters 5 Forces…………...……………………………………………………..…………………………. 7
Power of Buyers…………………………………….……….…………………………….7
Power of Suppliers……………………………………….………………………………. 7
Barriers to Entry…………………………………..……………………………………… 7
Threat of Substitutes……………………………...…………...…………………………. 7
Competitive Rivalry………………………………………….……………………………8
The Drivers of Change………………...………………………………………………………………..…………9
Companies in the Strongest/Weakest Positions………………………...………………………..11
Industry’s Attractiveness and Prospects for Long-Term Profitability……………...……………15
Works Cited………………………...……………………………………………………………………17
Industry Analysis: Department Store Industry Introduction:
The Department store industry is defined by the North American Industry Classification System (NAICS) as “… stores that have separate departments for various merchandise lines, such as apparel, jewelry, home furnishings, and linens, each with separate cash registers and sales associates. Department stores in this industry generally do not have central customer checkout and cash register facilities.”(Census Bureau) According to Investopedia industry handbook the department store industry has been divided into three segments namely traditional department stores, discounters and demographic retailers. (Investopedia). The industry’s primary competitors are Target, Macys, Sears Holding Corp, JC Penny & Kohl’s. (Lekovic 23) Due to the economic crisis that we are currently facing, this industry has been faced with difficult challenges. Many department store customers are keeping a watchful eye on their spending habits.
The contents of this analysis will describe the department store’s dominant economic factors, forces acting on the industry, drivers that shape the industry and SWOT (Strengths,
NACIS 452111
Table of Contents
Introduction…………………………………………………………………………….………… 3
The Industry’s Dominant Economic Features……………………………………………………………..……………………….…… 3
Porters 5 Forces…………...……………………………………………………..…………………………. 7
Power of Buyers…………………………………….……….…………………………….7
Power of Suppliers……………………………………….………………………………. 7
Barriers to Entry…………………………………..……………………………………… 7
Threat of Substitutes……………………………...…………...…………………………. 7
Competitive Rivalry………………………………………….……………………………8
The Drivers of Change………………...………………………………………………………………..…………9
Companies in the Strongest/Weakest Positions………………………...………………………..11
Industry’s Attractiveness and Prospects for Long-Term Profitability……………...……………15
Works Cited………………………...……………………………………………………………………17
Industry Analysis: Department Store Industry Introduction:
The Department store industry is defined by the North American Industry Classification System (NAICS) as “… stores that have separate departments for various merchandise lines, such as apparel, jewelry, home furnishings, and linens, each with separate cash registers and sales associates. Department stores in this industry generally do not have central customer checkout and cash register facilities.”(Census Bureau) According to Investopedia industry handbook the department store industry has been divided into three segments namely traditional department stores, discounters and demographic retailers. (Investopedia). The industry’s primary competitors are Target, Macys, Sears Holding Corp, JC Penny & Kohl’s. (Lekovic 23) Due to the economic crisis that we are currently facing, this industry has been faced with difficult challenges. Many department store customers are keeping a watchful eye on their spending habits.
The contents of this analysis will describe the department store’s dominant economic factors, forces acting on the industry, drivers that shape the industry and SWOT (Strengths,