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As UK’s second biggest food seller, ASDA provides its customers with low-price, American-style shopping in an English accent. In the present time, ASDA is owned by the American biggest retailing stores-Wal-Mart, and runs more than 540 stores of both food and general merchandise, for example, supermarkets and various other kinds of shopping centers (Gay & Charlesworth & Esen, 2007). Besides its products and services in foods, it also has business of nonfood, for instance, apparel, books, house wares, and so on.

2.1.2 Amazon

Amazon is a UK online retailer, which is experienced in business covering a range from language, products, and customer service. Its markets have expanded from England to Ireland, Scotland, and Wales. And Amazon has long been doing business in media, electronic products, and books, music, videos, and so on.

2.2 likely competitive forces

In order to analyze the likely competitive forces shaping Argos’s use of the web, Porter’s five forces analysis is used. As we know, each organization in an organization is different from others, the forces influencing the organizations are common. The five forces is a useful tool to assess the competitive surroundings of an industry (Heinemann & Schwarzl, 2010). On the whole, the five forces are as follows: 1. threat of new entrants, 2. bargaining power of buyers, 3. bargaining power of suppliers, 4. threat of substitute products or services, and 5. intensity of rivalry among enterprises in an industry. To examine all the five forces is an effective way for evaluating an organization’s competitive ability in an industry. Besides, Porter’s five forces analysis is based on the “structure-conduct-model”, which is a famous economic theory.

2.2.1 The threat of new entrants

In practice, a new competitor may make the decision to enter some industries, and his or her action may bring a reduction of the incumbent firms’ benefits and potential profits. In Porter’s five forces, this is called the threat of new entrants. It is of common knowledge that new competitors tend to go to industries in which people gain benefits far more than their investments. However, there is a problem, that is, some industries have nearly no barriers or conditions for new competitors, which will result in the excess competition of this industry (Held, 2009). Upon here, I think we can get the conclusion that the extent of the threat of new entrants depends on the degree of difficulties with which a new competitor is allowed to enter the industry. In other words, the more the difficulties, the lower the threat of new entrants.

Actually, there are a lot of barriers in terms of the threat of new entrants, for instance, economies of scale, requirements of the capital, similarities of products, and means of getting into the distribution channel, switching costs, and advantages in the perspective of cost on condition of the same size. For Argos, it is now trying to enlarge its product differentiation in order本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。