This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
3/08/2005
A New Victoria Secrets
In the article Is Chico's teasing Victoria's Secret? they talk about a new company that it competing with Victoria Secrets. It is for the individuals that are not interested in sexy, young underwear. It is for older individuals that want less of the sexy look. I think that this is great that there is a company out there that will have to make Victoria Secrets compete in the market. The more competition ino the market the better for the consumers.
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4 comments:
Competition is almost always a good thing. Hopefully this new company can really compete with Victoria's Secret. That would would be a great thing for me because then I could go buy bras somewhere else cheaper. Victoria's Secret bras are expensive.
This sounds like greater competition to Wal-mart lingerie department than to Victoria's Secret. With them targetting an older crowd, that doesn't seem like it would take a significant market share from Victoria's Secret and from what I've read, I don't want my wife wearing Chico any time soon.
To me this seems more like dividing up the market into finer and finer niches. This is free entry driving profits towards zero in action
(Keep in mind that zero economic profits doesn't mean that you won't make accounting profits, only that no one sees entering your industry as worthwhile any more).
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