Retail Strategy
Name: Mohamed Hossam Eldin Mohamed Nawar
MBA – Supply Chain
2nd assignment
* Three aspects of value oriented retail strategy:
1-Expected
2-Augmented
3-Potential
An expected retail strategy represents the minimum value
Chain elements a given customer segment (e.g., young women) expects from a
Type of retailer (e.g., a mid-priced apparel retailer). In most cases, the following are
Expected value chain elements: store cleanliness, convenient hours, well-informed
Employees, timely service, popular products in stock, parking, and return privileges.
If applied poorly, expected elements cause customer dissatisfaction and
Relate to why shoppers avoid certain retailers.
An augmented retail strategy includes the extra elements in a value chain that
Differentiate one retailer from another. As an example, how is Sears different from
Saks? The following are often augmented elements: exclusive brands, superior
Salespeople, loyalty programs, delivery, personal shoppers and other special services,
And valet parking. Augmented features complement expected value chain
Elements and they are the key to continued customer patronage with a particular
Retailer.
A potential retail strategy comprises value chain elements not yet perfected by a
Competing firm in the retailer’s category. For example, what customer services
Could a new upscale apparel chain offer that no other chain offers? In many situations,
The following are potential value chain elements: 24/7 store hours (an
Augmented strategy for supermarkets), unlimited customer return privileges, full-scale
Product customization, instant fulfillment of rain checks through in-store
Orders accompanied by free delivery, and in-mall trams to make it easier for
Shoppers to move through enormous regional shopping centers. The first firms
To capitalize on potential features gain a head start over their adversaries.
Barnes & Noble and Borders accomplished this by opening the first book
MBA – Supply Chain
2nd assignment
* Three aspects of value oriented retail strategy:
1-Expected
2-Augmented
3-Potential
An expected retail strategy represents the minimum value
Chain elements a given customer segment (e.g., young women) expects from a
Type of retailer (e.g., a mid-priced apparel retailer). In most cases, the following are
Expected value chain elements: store cleanliness, convenient hours, well-informed
Employees, timely service, popular products in stock, parking, and return privileges.
If applied poorly, expected elements cause customer dissatisfaction and
Relate to why shoppers avoid certain retailers.
An augmented retail strategy includes the extra elements in a value chain that
Differentiate one retailer from another. As an example, how is Sears different from
Saks? The following are often augmented elements: exclusive brands, superior
Salespeople, loyalty programs, delivery, personal shoppers and other special services,
And valet parking. Augmented features complement expected value chain
Elements and they are the key to continued customer patronage with a particular
Retailer.
A potential retail strategy comprises value chain elements not yet perfected by a
Competing firm in the retailer’s category. For example, what customer services
Could a new upscale apparel chain offer that no other chain offers? In many situations,
The following are potential value chain elements: 24/7 store hours (an
Augmented strategy for supermarkets), unlimited customer return privileges, full-scale
Product customization, instant fulfillment of rain checks through in-store
Orders accompanied by free delivery, and in-mall trams to make it easier for
Shoppers to move through enormous regional shopping centers. The first firms
To capitalize on potential features gain a head start over their adversaries.
Barnes & Noble and Borders accomplished this by opening the first book