This paper reflects on Cintas competitive environment. The segment that has the strongest outcome on Cintas Strategy is the force of rivalry across the market (Lumpkin, 2007). “Rivalry is competition that exist among sellers when they attempt to accomplish the objective of increasing market share and profits.” These sales differs in relation to the aspects in the marketing mix. They include promotion, price, distribution and product. A lot of firms design, manufacture and formulate similar programs that Cintas industry provides. This is a huge threat that this industry needs to work on to emerge the strongest at the market. Cintas can overcome industry rivalry when it innovates new programs and services at the market to increase its outcome.
There is a difference between competitive and general environment in marketing. The general market incorporate six broad dimensions. They include legal, global, socio-cultural, technological, demographic and macro-economic. Conversely, competitive environment attributes to a situation that a firm encounters within its area of operation. In this regard, increase in number of sellers who provide similar services and products generates this kind of competition. Competition is essential in a business to enable industries to last for a long time. This happens when competitors coordinate and become more powerful at the market. However, competition may subject other firms to encounter decrease in sales. General competition is different because through it, companies cannot control directly elements and segments of the market.
A trend that affects Cintas in this segment is the availability of new products and services that are offered by new competitors. Clearly, this innovation incorporate high technology that attract clients to other firms. The reason why this segment has the strongest impact is that it reduces profits of the firm by driving clients away.
Cintas is an American firm that offers unique services to enterprises. The company performs tasks such as designing, manufacturing and formulating uniform programs that depict the corporate identity. It offers services that ranges from first aid, promotional and fire protection products. Cintas is a real example of an organization that represents each of the forces below.
The Purpose of the five forces model is to represent a framework which evaluates on the competition level within an industry. This also assesses on the strategy and development in a business. They apply to Cintas industry in the following ways;
Threat to New Entrants
This trend is strong when it measures if Cintas firm may attract rivals at the market. As a result, this tends to decrease the returns that the firm incurred previously. To avoid such situation, Cintas needs to ensure that its business abides by the policy of the government. They also require to create a brand equity to enhance loyalty among their clients (Dess, 2016).
Threat of Substitute
This force measures weather plenty of products are available at the market. It drives clients to switch to the alternatives. In this case, Cintas should provide products and services that are relatively cheap and of high quality. This is to prevent their customers to purchase other related products that are available at the market.
Bargaining power of clients
This reflects and measures on the capability of clients and how they subject firms under pressure. There is increase in purchasing power if customers have access to plenty of alternatives. In this case, Cintas need to check on the aspect of the buyer price sensitivity. This is to avoid situations whereby they switch to alternative firms that provide products and services at low prices.
Bargaining Power of Suppliers
It is a moderate force that determine or measures if suppliers subject industries to excessive charges for unique resources. Equally, they may reject completely to incorporate a certain company in their operation. Cintas industry require to overcome this power by creating a strong distribution channel. They also need to ensure that there is availability of substitute inputs to overcome this force.
It is a strong and key force that measures competition across various industries. To market its products and services effectively, Cintas requires to be transparent in their operation. Additionally, they should also embrace a powerful competitive strategy by being innovative.
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