1) Rei has come a long way to continue being one of the best suppliers of specialty outdoor equipment and clothing. They have been successful because of their awareness to using their core competencies as a competitive advantage. There are many competitive forces affecting the company over time, but REI has developed some competitive strategies to deal with them.
* Rivalry of competitors - To combat competition from others, REI has developed a differentiation strategy by supplying high-quality equipment from Europe that can not be purchased locally. This allows REI to differentiate from its competitors because they carry unique equipment not available otherwise. This helps attract customers because they can notice the wide range of products the store offers and be more inclined to shop here instead of using other alternatives.
* Threat of new entrants - To combat the threat of new entrants, REI has developed a growth strategy of expanding its high-quality store up to 70 different areas in the United States and through the Internet.
This shows how popular and successful the company is in serving its customers by building long lasting relationships with everyone. With this, it can help the company deter new entrants into the market place to compete with.
* Threat of substitutes - To combat the threat of substitutes, REI has a cost leadership strategy of implementing information technology to complement the sales of the equipment at the store. REI has produced its website online as an information source to attract customers through free benefits such as coupons and free in-store pickup. Afterwards, REI allows its customers to try out its equipment in an environment similar to the outdoors such as an obstacle trail or a replica of a mountain. These services allow the company to serve its customers in a high-quality environment...