Canadian Tire: Competitors Of The Retail Industry
1. Rivalry among existing competitors The retail industry is extremely competitive. Here in Canada we enjoy large well established retailers such as Hudson Bay, Costco, and Canadian Tire. According to Statistics Canada “Chain stores, defined as operating four or more locations within the same industry group and under the same legal ownership, have been incrementally increasing market share for more than 10 years” . Retail chain stores make up approximately half of the total retail revenue in Canada. Canadian Tire offers an Options MasterCard with no annual fee to their customers. The MasterCard allows cardholders to collect 10x e-Canadian Tire money in their Canadian Tire store, Sport Chek, Mark’s, PartSource and Canadian Tire Home Services, they can collect 2x e-Canadian Tire money anywhere else they shop and they can also collect at Canadian Tire Gas Stations. This makes it easier for customers to gather Canadian Tire money without piling up a bunch of money bills at home and an easy way to accumulate points while shopping. Costco is a wholesale company whose mission is to offer lower prices than their existing competitors like BJ’s and Sam’s Club without the need for salespeople and lavish locations. “The warehouses are designed to help small-to-medium-sized businesses …show more content…
Their costs will be much higher and they would require more capital in comparison to Dollarma to exist in the market. TJX has a very low threat of new entrants because in order to establish themselves at such a large scale requires huge capital investments for bulk purchases, and to ensure there is good relations with the supplier to purchase products at such low prices. A strong network, reach of customer, and strong information technology systems is required to create a supply chain. This is difficult to achieve for a new entrant. 5. Threat of Substitute
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