1. Using the value chain and competitive forces models analyze 99 Cents Only Stores.
The value chain, also known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter.
The value chain for 99 Cents Only Stores is good. The company’s decision in purchasing High Jump Supply Chain Advantage for its new distribution center will help them to solve the issues they have with new center.
Porter’s Competitive Forces Model
Threat of new entrants: 99 Cents Only Store are 5 times larger than others and their sales are 5 times more than competitors. Considering the investment required entering the market threat of new entrants is low.
Industry Competitors: The competition is strong for 99 cents because some of the competitors have better purchasing power then them.
Substitute: They are selling generic brands so the substituting products are easy.
Suppliers: Suppliers are strong because they are needed to......
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