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i. Economic Conditions
They sell high-quality smoothies drink and snack, which many consumers consider being discretionary items. During economic downturns, fewer customers may shop in their stores, and those who do shop may limit the amount of their purchases, all of which may lead to lower sales, higher markdowns, and increased marketing and promotional spending in response to lower demand. Deterioration of economic conditions and consumer confidence may also adversely affect their credit customers’ payment patterns and delinquency rates, increasing their bad debt expense. Some macroeconomic indicators suggest that a modest economic recovery has begun; however, key factors such as employment levels, consumer credit, and housing
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This can be around any elements of the enterprise such as the fundamental design of the format of the store or a part of the store such as checkout counters, merchandise fixtures, layout or overall dimensions, or size of the store.
Time Reconfiguring: A retailer can also reframe its business in terms of the time it performs certain activities and offers service. With a bricks-and-mortar store, it would be extremely difficult to change out the merchandise every day. But at Gilt every day when you arrive at their website, it is a new and exciting day with new merchandise and one-day sales also called flash sales. Gilt began by offering women’s health consumer sample sales but now has expanded to menswear, baby and kids, home furnishings, and food.
Place Reconfiguring: A new logic around the geographic location of a retailer is another way to reframe its business model. For instance, retailers such as Walmart, Coldwater Creek, and Office Depot have developed e-store and hence are essentially putting the retailer’s place of business in the customer’s home or office or wherever the customer has access to a computer, electronic tablet, or phone with an Internet
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Often the place of possession is at the retail store, but home delivery is an option and home installation is another way of providing possession. Another way of thinking about possession is with regard to the passing of legal title to the
Across the United States, Mexico, and Canada these two giants have industrialized characteristic strategic priorities, and brand images. Despite the strategic differences, Home Depot and Lowe’s both share one major objective. The fact of customer-based increasingly active online, both companies being committed to allowing their customers to move perfectly online and offline channels. For example, a customer may order online and have the item shipped to their nearest store, or may even identify the item in store and have it arranged so it could be shipped to their worksite. (Home Depot Vs.
Danny Schechter wrote Investigating the Nation’s Exploding Credit Squeeze, two years before the 2008 world crisis. It is said that only true crisis can lead to change, an explanation to why so many people ignored the signs. Everyone is a target to the credit industry, not only the poor or middle classes. In a consumption driven culture, it is impossible not to spend your money and get into debt. Products seem fairly cheap, companies are always suggesting that you are making “a great bargain”, “buy two and one free” and it seems that everything is always “on sale” (Schechter 357).
The large anchor stores are usually strategically located at the end points of the shopping mall. The placement of the stores are easily accessible and offer ample parking. Internally, the floor plan is tactically set up to draw the attention the consumer. The mall entrance for both stores opens up to cosmetics, perfume, shoes and ladies apparel. These areas generally account for more than 40% of the store sales.
While society and politics were progressing, one of the most prominent economic changes in American history was beginning. The economic boom was caused by many factors, including natural economic growth and mass marketing and production but one of the most important reasons was that Americans started buying on credit. This meant they bought more expensive items then paid them off in installment plans; the items include washing machines, vacuums, and refrigerators (“Buschardt”). At the beginning of the decade, only a number of middle-class consumers bought with credit, yet by the end of the decade, up to 90 percent of consumers bought furniture on credit along with similar increases in many different retail departments, proving that the boom
Premier Inn is a famous British hotel brand with over 700 facilities worldwide. Being founded by Whitbread in the year 1987, the company is the result of a merge between Premier Lodge and Travel Inn. Premier Inn hotels operate under the strategic partnership between the leading international companies and Britain’s leading hospitality firm Whitbread PLC. This allows enhancing the popularity of the Premier Inn brand all over the world.
Some markets choose to provide the lowest cost possible to their costumers and some of them choose to sell spatialized products to their customers. The SWOT analysis provided useful clues about the future of
Retail positioning aims to provide competitive edge by differentiating the retailer from its competition. This differentiation can be achieved through retail offerings that appeal to, and are easily identifiable to by its target market. This process is done by selecting market segmentations and matching them to the retail offerings as precisely as possible. It is vital to understand the consumers needs and wants in order to make a proper match and be distinguished from other retailers. Nordstrom distinguishes itself from other retailers by positioning itself as an upscale fashion store with outstanding customer service, and its multichannel approach.
Threats: First and most importantly, there is a high threat of consumers backward integrating and making their own smoothies. Second, other smoothie competitors could cut their prices or innovate new products and steal some of Jamba Juice’s market share. Third, potentially, raw material prices could unexpectedly increase due to a variety of environmental or business factors Fourth, fairly stagnant market demand and low barriers to entry could lead to new entrants entering and stealing market share. Fifth, the changing economy may leave consumers with less disposable income, which will result in a decline in the sales of Jamba Juice.
In order to stay competitive they needed to find a way increase their profit. Jamba Juice only offered cold drinks, so in areas with cold seasons, such as New York, they lose money during the winter months. McDonald’s offered smoothies for about one dollar less than Jamba Juice and Starbucks was well known for their adult coffee beverages, which gave them an easy way to enter into a market for children who already came to the store with their parents. With their higher profit margins, large fast food companies could use smoothies as a loss leader and cause Jamba Juice to lose their footing. As McDonald’s began to market their smoothies, it became clear that they were seeing Jamba Juice as a rising
RECENT OPERATIONAL PERFORMANCE Gap Inc. Gap Inc. is a global specialty retailer offering clothing, accessories and personal care products for men, women, children and babies. The company has grown from a single store to a global fashion business with five brands — Gap, Banana Republic, Old Navy, Athleta and Intermix. Gap was founded by Doris and Don Fisher in 1969. The Fisher family still owns about 40% of Gap Inc..
SWOT Analysis Before we implemented our opioid addiction and rehabilitation service, it was important for us to examine what obstacles we might face and need to overcome as well as what we might be able use in our favor to help with our service. We performed a SWOT analysis to help identify the external opportunities and threats that were present as well as our internal strengths and weaknesses so that we might more efficiently jumpstart our service. External SWOT Analysis
Dr. J.R. Bester founder of Science Applications International Corporation (SAIC) is headquartered in McLean, Virginia and employ 40,000 people in 2013. This Aerospace and Defense industry offer products and services in the system integration, technical services and solution and scientific engineering. SAIC strengths are their loyalty they have from their clients by proving their customers with innovative merchandise that put the company ahead of others in their industry, with management marketing teams improving services through services and merchandises increasing company growth. The distributors that the support the company provides the company supplies are better than their competition (A, 2012).
Coca Cola took note of this, and realized that loan interest rates would likely rise as the economy returned. Thus, they took out low cost loans in 2001 to fund growth in 2002. They used the loans for research and development on new products to capitalize on in a strong 2002 economy. Currently, as global growth is slowing, Coca Cola may be watching for a similar opportunity. Social Analysis and Factors Social factors that affect the sales of Coca Cola 's products include the following: 1.
PORTER’S ANALYSIS New Entrants: In general, there are few barriers to entry in the smoothie industry, which would make this force very strong. • Economies of Scale: There are no considerable decreases in average costs as output increases. Smoothies are generally high margin products, which means that new companies could be profitable without having to sell too many products. • Capital Requirements: In the smoothie industry, there are few fixed assets that would need to be purchased in order to operate.
1.0) Introduction 1.1) Background During the past decades, the retailing industry has gone through many important changes. Saturated markets, fierce competition, and the turbulent macro-economic environment have condemned retailers to reconsider their retail strategy. Actually there are four factors which have constantly been reshaping the world of business – technological advances such as the internet, the loss of geographic advantage resulting from globalization, the shake-up of the traditional industries as a result of de-regulation and the rising power of the modern and complex consumer. However one of the most important factors remains the evolution of the Internet.