1. IntroductionMetro Holdings Ltd is a multinational company that operates two main business segments, namely property development and investment, and retail. This report explores Metro's retail arm, which operates three department stores and four specialty "accessories" stores in Singapore, as well as five other department stores in Jakarta and Bandung, Indonesia.2. Competitive Environment of Metro LtdThe competitive environment of Metro Holdings Ltd would be assessed based on Michael Porter's 5 forces model. The factors affecting each force would be critically analyzed to determine the competition the company faces. As the nature of department stores and specialty “accessorizing” stores is very different, the report would focus on the analysis of department stores which account for a larger share of the company's revenue and presence in the industry.2.1 Threat of new entrantsThe threat of new entrants The number of entrants is relatively low in the department store sector. 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 and customer loyalty is low because they can easily purchase similar products elsewhere. These lower the barriers to entry, allowing new entrants to gain customers. On the other hand, most factors prove otherwise. The retail industry does not have high economies of scale to exploit in general. However, it is impossible to run large stores like Metro on a small scale. Large retail space, inventory and warehouse space are required to house a specialized portfolio of brands and products to better attract customers and suppliers. High capital requirements and operational expenses... middle of document......Michael Porter's Five Forces Model.• Able to draw valid and clear conclusions about the competition the company faces, based of the analysis.• Demonstrate a clear understanding of the business 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 the American Retail: Cross-Industry ComparisonEngle, J., How to Open and Run a Financially Successful Retail Businesshttp://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