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Retail Management Assignment
Retail Management Assignment
Roll no 38
T. Y. B. M. S
Def n:
A retail strategy is a statement identifying (1) the retailers target market (2) the format the
retailer plans to use to satisfy the target markets needs, & (3) the bases upon which the
retailer plans to build a sustainable competitive advantage.
Elements of Retailing Strategy:
(1) Retailers target market
(2) Retail format
(3) Building a sustainable competitive advantage
In general, markets with highly seasonal sales are unattractive because a lot of
resources are needed to accommodate the peak season, but are underutilized the rest
of the year.
(b) Competitive Factors:
The nature of the competition in retail markets is affected by barriers to entry, the
bargaining power of vendors, and competitive rivalry. Retail markets are more
attractive when competitive entry is costly.
Retail markets dominated by a well established retailer that has developed a loyal
group of customers offer limited profit potential.
The final industry factor is the level of competitive rivalry in the retail market, which
is the frequency & intensity of reactions to actions undertaken by competitors.
Conditions that may lead to intense rivalry include: (1) a large no. of competitors that
are all about the same size, (2) slow growth, (3) high fixed costs, & (4) the lack of
perceived differences between competing retailers.
(c) Environmental Factors:
Environmental factors that affect market attractiveness are technological, economical,
regulatory, & social changes. When a retail market is going through significant
changes in technology, present competitors are vulnerable to new entrants that are
skilled at using the new technology. Some retailers are more affected by economic
conditions than others. Govt. regulations can reduce the attractiveness of a retail
market. Finally, trends in demographics, lifestyles, attitudes, & personal values affect
retail markets attractiveness.
(1) The performance sought, including a numerical index against which progress may
be measured, (2) a time frame within which the goal is to be achieved, & (3) the
level of investment needed to achieve the objective.