1. IntroductionMetro Holdings Ltd is a multinational company that operates two major business segments, namely real estate development and investment and retail. This report explores Metro's retail division, which operates three department stores and four “accessorized” specialty stores in Singapore, and another five department stores in Jakarta and Bandung, Indonesia.2. Competitive Environment of Metro Ltd The competitive environment of Metro Holdings Ltd would be assessed based on Michael Porter's 5 forces model. The factors influencing each force would be critically analyzed to determine the competition faced by the company. Since the nature of department stores and “accessorized” specialty stores is very different, the report will focus on analyzing department stores that account for a larger share of the company's revenue and presence in the industry.2.1 Threat of new competitorsThe threat of new The number of new entrants is relatively low in the department store industry. Department stores do not manufacture products or create their own brands of merchandise, their products are not differentiated. As a result, consumers have low switching costs, customer loyalty is low, as they can easily purchase similar products elsewhere. These lower barriers to entry, giving new entrants the chance to acquire customers. On the other hand, most factors prove the opposite. The retail sector does not have high economies of scale to exploit in general. However, it is impossible to operate department stores like Metro on a small scale. Large retail, inventory and warehouse space are needed to house a specialized portfolio of brands and products to better attract both customers and suppliers. Large capital requirements and operating expenses... middle of paper... Michael Porter's Five Forces Model.• Able to draw strong and clear conclusions about the competition faced by the company, based on analysis.• Demonstrate a clear understanding the company and the real environment in which it operates.Works Citedhttps://www.metro.com.sg/storefront/ContentDetail/AboutUs3.asp?ContentId=458http://digilander.libero.it/fschivardi/ images/ schivardiviviano.pdfCharles A. Ingene, Economies of Scale in American Retail: A Cross-Industry Comparison Engle, J., How to Open and Run a Financially Successful Retail Business http://secure-online-purchasing.suite101. com/article.cfm /the_growth_of_internet_shoppinghttp://www.streetdirectory.com/travel_guide/singapore/expat_guide/910/singapore_aims_to_achieve_65mil_populati on.phpEng, P., Accounting for Indonesia's Economic Growth: Recent Past and Near Future