TJ Maxx

Porter 5 Forces.

Rivalry among Existing Firms – High
There is a high rivalry between firms in this off-price department store market. TJ Maxx faces competition from other off-price department stores, such as Ross, Big Lots, Burlington Coat Factory, Kohls, Sears, and Target. In addition, there is also a high rivalry from online off-price stores such as Overstock and Amazon. However, due to the quality and cost of its products, and its wide demographic reach, TJ Maxx is carving a comfortable niche in this market.

Threat of New Entrants - Medium
There are few barriers to enter this industry, but due to the high rivalry between firms, it might be hard to succeed in it. In addition, to succeed in the off-price market, companies will need a high capital and monetary funds to invest in both advertising and bulk purchases in order to off-price its inventory for sale. In this day and age, there are numerous online retailer that start up every year, but due to lack of funds or advertising, most do not succeed.

Threat of Substitutes - High
This threat is high because since there is a large variety of other options for the products that TJ Maxx sells, from the lower cost stores like Walmart, Old Navy, Ross, and Target to the higher end department stores like Macys, JcPenny, or Dillards, as well as online retailers such as Overstock and Amazon. There is a high threat because anyone could just buy their clothing or furnishings at any of these other stores.

Buyer Power - Medium
Due to the high competition for buyers in the off-price market, buyers do have some power in the form of shopping around and looking for the best price and quality. Many buyers in this market are price conscious and are always looking for a good deal. However, because the customer base is large, each individual items may not be affected by buyers and there is usually someone who