In the lawnmowers spare parts industry, due to its instinct of low technology and low capital requirements, there is no high market access to business starters. Thus, the business model of Mow More Supplies can be easily copied by new entrants which is an underlying threat to it.
In this industry, although there are no big companies who monopolize the market, there are many small and medium companies. These competitors forms an intense competitive environment which might threat or hinder the future development of Mow More Supplies. In this situation, it is impossible for Mow More Supplies to raise or even maintain the present pricing strategy which will cause it losing the bargaining power of buyers.
Although Mow More Supplies procures spare parts from manufacturers in bulk, its competitors also do the similar kind of procurement. In this circumstance, it still does not enjoy a competitive edge in the industry.
4. Suggestions to Mow More Supplies. In order to outperform in lawnmower high wear parts industry, a multi-faceted strategy should be proposed to pull the business to a sound rail.
Concluded from the previous analysis, Mow More Supplies could expand its business coverage to larger and wealthier residential areas. Having a wider presence in the southeast of the US could help it seize more business opportunities, meanwhile doing a wider range of marketing campaign in the neighboring areas can minimize the risks of consumption habit differences.
Second, Mow More Supplies keeps a high fill rate of the stock in Alden, NY and distributes when orders received. To keep an efficient and economical logistics system, the company could move its stock sites to somewhere near Mississippi and introduce a computer-aided storage system. In this way, Mow More Supplies could reduce the cost on the physical stock site, accelerate the circulation speed and cut the delivery cost and time.
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