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Running Head: ENVIRONMENT ANALYSIS AND INDUSTRY ANALYSIS Environmental Analysis and Industry Analysis for the Capstone Project Jasmine Rackard, Dawn Jemeyson & Felicia Rodriguez Grand Canyon University: BUS-485 June 30, 2018 1
ENVIRONMENT ANALYSIS AND INDUSTRY ANALYSIS Five Forces of Competition To learn more about the clothing industry, one must examine the five forces that affect the ability of firms to operate profitably within an industry (Hitt, Ireland, & Hoskisson, 2015, p. 244). There will always be treats of new entrant with any company due to the expanding economy. Little Treasures has a low threat of new entrants since they offers gently used brand name children’s clothing to customers at low prices. The threat of substitute products is pretty low with Little Treasures. Some industry competitors would be yard and garage sales, online stores and other resale/thrift type stores. Bargaining power of suppliers is an important aspect to Little Treasures. They offer higher quality products at lower prices through consigners. They not only depend on their consigners to provide quality clothing but they also purchase brand new quality clothing in bulk. The bargaining power of buyers is also low since Little Treasures already offers low prices, quality clothing and great customer service. Competitive rivalry

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