Bed Bath And Beyond Essay

At present, the large cross-category physical retailers occupy a large percentage of market. For example, Walmart and Target who have more awareness of brand and more convenient network of the retailer stores. In the beginning, Bed Bath & Beyond does not provide an online shopping service to customers. Because the online shopping can help someone who is lazy to buy things in the physical stores and does not own a car to the stores shop. Under the pressure of Walmart, Target and etc., Bed Bath & Beyond started to open online shopping website. However, many pure online retailers are also a big threat of Bed Bath & Beyond especially Amazon.com which will have better price and no tax. Because Amazon has the lower cost of their products, they have

In a Walmart, there are always a McDonald, financial services and pharmacies.

Industry Analysis

Competitive rivalry.

BBB have a leading position in Sales in its own field. BBB have the complete and advanced customer services like free return and they even provide no receipt return which is also a competitive way to remain their customer. But Bed Bath & Beyond has a low switch costs. Customers will have no costs and ricks to to change their favorite store to buy things for their home.

Threats of new entrants 小

The threats of entrants is small, because Bed Bath & Beyond and any other retailer stores who sell products covering bedroom, dining room and kitchen have large scale and over hundreds physical stores. The new entrants will need high financial barrier before they enter this market.

Supplier power.小

BBB has over 5600 suppliers. At the same time, they have no longer term contract, so they can change their popular products immediately and easily. But their largest supplier is only responsible for the 6.67% of the total revenue per year. Otherwise, the short-term contract and small supplier cause a unstable supplier