The Threat of Entry

The force of this one is high, because is easy to open and enter in the market with a Sanrio boutique, licensing the Sanrio brand or even carrying Sanrio products in your store. Many factors influence the total cost of opening a store. This includes business size, geographic area also which period of year that is expected to open. The Payment Terms Sanrio Inc. are: You need to open a Stand-By Letter of Credit in favor of Sanrio Inc. in the amount of $ 50,000. This will serve as our security and gives the right to pay the bills (90) days through the following ways: check or Money Collection to the Order of Sanrio Inc. , money transfer or Credit Card.

The Power of Suppliers

Since Sanrio it’s already the supplier for Sanrio franchisee’s stores with licensing or wholesale, we can say that the power of supplier brand its low inside the Sanrio factories around the world but high for the different stores that sell Sanrio Inc. products. The company is not limited to character promotion through their products but also through publishing and movie productions. The company also partners with various food establishments of which it also shares franchises. Sanrio has rights to Peanuts characters in Japan and owns an animatronics establishment known as the Kokoro Company, Ltd. whose most popular android is known as Actroid. Taiwan's second largest airlines, Eva Air, decided in October 2005 to use the Hello Kitty brand on flight routes between Taipei, Tokyo and Fukuoka. By paying Sanrio a franchisee fee, Eva Air has dedicated an entire Airbus A300-200 to the Hello Kitty brand and its cutie-like universe.

The Power of Buyers

The power of buyers is high. Since Sanrio Inc. produces its owns products, the potential buyers are franchisee stores. Inside these ones the main buyers are women from all ages and also men that buy items for women or for theme since Sanrio also produce products for men. At Sanrio, they believe that a gift is more than just a gift. Rather, a gift is a means of expressing our heartfelt feelings for others. This philosophy guides all Sanrio activities, whether we're designing a stationery set, a retail store, or an animated television series. Finally Sanrio has its particular line for the Japanese market.

The Threat of Substitutes

This force is low. Because they produce a uniquely diverse and legendary merchandise mix of products from $0.50 to $50,000, they have presence in 500+ Sanrio Boutiques worldwide, multi-tier and multi-channel distribution strategies , national marketing and PR support also they have fans of all ages across the globe an this fact make theme unique because the target market is very wide. For these reasons we can say that the products that Sanrio offers worldwide are difficult to compete with because they are inimitable. Sanrio prefers to work with potential competitors rather than compete against them, we can see that union with the Tokidoki Hello Kitty collection.

The intensity of competition

The intensity of competition is low because as we said in the last paragraph Sanrio Inc. has unique cartoons and produces 2,500 items adorned with Hello Kitty and the other trademarked Sanrio character designs. Every month, over 100 new products are introduced so there’s always something new to see. Plus, Sanrio's bonus cards reward customers for paying frequent visits to their local store. One of the important factors that differentiate Hello Kitty in the world of cartoons and characters is that Hello Kitty is not alive with stories, gimmicks and pre-determined personality before it reaches the people. Hello Kitty's Zen-like calmness and faceless expression are the major reasons for its appeal across age groups and markets. They also had different collection lines with different designers like: Simmons jewelry , apple accessories , camomilla etc.