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Economic Features Of Retail Industry

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Economic Features of the Industry Some of the economic features include macro-economic factors like consumer confidence, consumer spending and economic growth. Consumer confidence and consumer spending particularly plays an important role as they determine the demand of the market and exhibits the potential for growth of the industry. Economic growth is related to the rise in GDP which in turn has a strong impact on the multiplier effect and hence to economic development of the market (Thangayelu, 2004, p. 247). However the labor market for the retail industry services is the most dominant feature of the Industry. As the education level increases people moved from the primary sector of production to secondary sector and then to tertiary sector. …show more content…

The competitive forces namely are bargaining power of suppliers, bargaining power of buyers, threats from substitutes, threats from new entrants and threat from competitors (Porter, 2008). When any of the competitive force is strong, it is very difficult for the organization to obtain a dominant position in its market or it might even lead to a lower profitability. The bargaining power of the supplier relates to the strength of the major supplier or suppliers. It involves charging higher prices which could not be passed by the company onto its customers. The buying power of the buyer could also act as a force especially in retail industry when the buyer has option to switch suppliers. The threat from substitute products is when there is presence of alternate products in the market. For instance the brands offered by the retail departmental store might have different alternates and consumers could switch between similar products. There might also be threats of new entrants in market as they would lead to an increase in competition. It might lead to lower prices and generally may result in a more competitive environment. However the companies use different barriers of entry to stop new entrants like capital investment requirements, distribution channels and government regulation. If the existing companies enjoy economies of scale, they could eventually drive the new entrants quickly by implementing …show more content…

The company is involved in providing various products of different qualities at affordable prices. It has a huge market across Australia from the middle and upper class of people. People are satisfied for the quality of products provided to them and consider these products as “value for money”. Currently it operates in most of the cities of Australia and has a broad range of products. Customers have an option to shop by visiting the nearest store or to order online the required goods. E-commerce has made shopping easier and more comfortable. The goal of Myer is to operate internationally and to justify their slogan. Their slogan is “Myer is my

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