Sears, an American retail store, was the largest retailer $($measured by revenue$)$ in the United States until the $1990$s$.$ In $2018,$

Sears filed for bankruptcy. Some commentators have argued that the rise of Amazon drove Sears to bankruptcy. However, others

argue that Sears was in decline long before Amazon became a dominant force in the market.

Consider each of the arguments given for Sears' downfall.

Sears' management disregarded the impact of online retailers

entering Sears' market space.

Sears' management failed to consider the effect of services

not offered by Sears, such as second$-$day shipping, which was

offered by some online retailers.

a$.$ This is an example of Sears failing to prepare for

the tremendous bargaining power of online retailers.

non$-$price competition with existing competitors.

the threat of new entry into the retail space.

price wars with existing competitors.

b$.$ This is an example of Sears failing to prepare for

sellers using their bargaining power to offer services

not available at Sears.

buyers using their bargaining power to demand new

services.

the intensity of competition among existing

competitors.

substitute services that would be appealing to Sears'

customer base.