The rivalry is present and maintained due to the availability of market established companies and brands. The business is likely to face strong competition from well-established companies like Signet Jewelers, Tiffany, and co. , and fossil. The mentioned companies enjoy a well-established customer and brand loyalty. In addition, they also enjoy a lot of economies of scale. Buyer Power: buyers in the market are benefiting from low-cost switching; however, the brand recognition enjoyed by some larger companies diminishes buyer power to a certain extent. Hence it is good to have another brand available in the store.
Supplier Power: There are a number of suppliers to the jewelry market and many more options in this ever-changing technological world. Market players often have long-standing relationships with suppliers, with contracts that can result in switching costs being incurred. Suppliers of unique products such as one-carat (or greater) diamonds tend to exert stronger supplier power due to uniqueness. Retailers may also purchase finished jewelry from manufacturers. Such suppliers have less power over market players due to the fact that they are numerous and switching costs tend to be fairly minimal.
Manufacturers of finished jewelry also face the possibility of market players backward integrating into their business area. New Entrants: New entrants may enter the market as a new company or by diversifying the operations of an existing company, although they may always find it difficult to compete with larger market players with established brand recognition, economies of scale and stronger bargaining power with suppliers. Hence the uniqueness of the product delivery is a core competence to Sara jewelry: it maters Inc. However, imitation will not let the business enjoy the core competence for a long time.
Threats of Substitutes: Substitutes include products that are able to compete for consumers’ discretionary spending, such as replicated and/or counterfeit jewelry, such as costume jewelry or jewelry made without precious stones or metals. These, however, lack the glamour and status leading to the distortion of quality delivery.
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