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Convenience Stores in United States – Porter’s Five Forces Strategy Analysis

  • June 2015
  • -
  • Aruvian's R'search
  • -
  • 30 pages

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There is no one single definition of convenience from the retailers, manufacturers and industry groups, although ‘meeting shoppers’ needs’ as a definition is encouraging. On any given day, up to 100 million Americans visit a convenience store. Some locations serve a couple hundred customers per day, while others exceed 2,000.Convenience stores are the fueling center of choice. It is estimated that about 60% of the gasoline sold in America is sold through convenience stores. With motor fuel sales accounting for 61% of the industry's total sales, it's plain to see why at least three-quarters of existing convenience stores now sell gasoline and 95% of new ones include fuel pumps.

Aruvian's R'search analyzes Convenience Stores in United States in Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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