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Discount, Variety Stores. the Business Environment and the Business Claire ( Lan ) Lin. Business Environment. Bargaining Power of Buyers. Bargaining Power of Suppliers. Threats of Substitution and Entry. Threat of Substitution
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Discount, Variety Stores the Business Environment and the Business Claire (Lan) Lin
Threats of Substitution and Entry • Threat of Substitution • Increasing number of substitutes: local chains, internet-based retailers, and catalog businesses • Need to differentiate trough obtaining a unique/large selection and offering lower price • Threat of entry • Barriers exist to enter the industry such as access to distribution channels, customer base, and supplier relationship • Economies of scale are needed to compete on price • Threat of entry is low to medium