Studysetquestions
CHAPTER 3: ANSWERS TO QUESTIONS FOR DISCUSSION
1. Why is it necessary to develop a thorough, well-integrated retail strategy? What could happen if a firm does not develop such a strategy?
Without a predefined and well-integrated strategy, a retailer cannot succeed in a competitive environment. A well-integrated retail strategy better enables a retailer to explore the environmental opportunities that are available, seek a differential advantage, develop an appealing offering, coordinate activities, and anticipate and overcome crises.
2. How would situation analysis differ for a shoe store chain and an online shoe retailer?
Situation analysis is the candid evaluation of the opportunities and potential problems facing a prospective or existing retailer.
A shoe store chain may evaluate opportunities and problems such as increased competition from department stores, new developments affecting a large number of store units (such as increased sales of shoes to tourists in certain markets), and may explore such overall competitive advantages as free delivery, etc.
The online shoe retailer should devote more attention to global influences, other Web-based competitors, delivery arrangements over longer distances, the quality and ease of use of its Web site, and pricing comparisons with other Web-based shoe retailers. The online shoe retailer may also need to explore the possibility of free return shipping due to issues with fit and color accuracy.
3. What are the pros and cons of starting a new hair salon versus buying an existing one?
Starting a new hair salon offers a greater flexibility in location, atmosphere, and choice of consumer market. It allows a strategy to be fully tailored to the new owner’s desires and strengths. However, starting a new hair salon entails construction or renovation costs, a time lag until the store is ready to open (and then until planned sales levels and profits are earned), an
1. Why is it necessary to develop a thorough, well-integrated retail strategy? What could happen if a firm does not develop such a strategy?
Without a predefined and well-integrated strategy, a retailer cannot succeed in a competitive environment. A well-integrated retail strategy better enables a retailer to explore the environmental opportunities that are available, seek a differential advantage, develop an appealing offering, coordinate activities, and anticipate and overcome crises.
2. How would situation analysis differ for a shoe store chain and an online shoe retailer?
Situation analysis is the candid evaluation of the opportunities and potential problems facing a prospective or existing retailer.
A shoe store chain may evaluate opportunities and problems such as increased competition from department stores, new developments affecting a large number of store units (such as increased sales of shoes to tourists in certain markets), and may explore such overall competitive advantages as free delivery, etc.
The online shoe retailer should devote more attention to global influences, other Web-based competitors, delivery arrangements over longer distances, the quality and ease of use of its Web site, and pricing comparisons with other Web-based shoe retailers. The online shoe retailer may also need to explore the possibility of free return shipping due to issues with fit and color accuracy.
3. What are the pros and cons of starting a new hair salon versus buying an existing one?
Starting a new hair salon offers a greater flexibility in location, atmosphere, and choice of consumer market. It allows a strategy to be fully tailored to the new owner’s desires and strengths. However, starting a new hair salon entails construction or renovation costs, a time lag until the store is ready to open (and then until planned sales levels and profits are earned), an