Furthermore, researchers found that customers visit malls for several reasons besides buying products; they see this shopping experience as an entertainment activity that brings fun and pleasure and for eating out (Kim et al, 2011). Recommendations for mall developers include providing sufficient eating out options to meet different customers' expectations (Makgopa, 2016). With the observable upturn in the income of the people in the region, expenditure on commodities has risen dramatically in the past few decades. Lifestyle changes have also donated to the attractiveness of fast food. Saudi Arabia, for example, is expected to develop into 4.5 billion-market for fast food brands.
Fast food industry competition According to the article in The Express Tribune written by Shahram Haq, competition in fast food industry helps middle class contribute to growth. In the beginning, the concept was only welcomed by the higher-income segments as prices made the food unaffordable for middle or lower income classes. Introduction of multinational food franchises, initiated in the 1990s, was in the midst of non-existent local fast food restaurants. Today, the trend is spreading fast and the industry experts believe this to be just the beginning for the flourishing industry. However, the industry has evolved since then as the restaurants now offer promotions at various hours of the day and on different products to open doors for the middle-class and low-income class.
This allows a reduction in costs and packaging. IKEA carries a collection of products, including home furniture and decorations. IKEA Damansara is the biggest eastern Asia branch. This wide choice is available in IKEA store and consumers can demand much of the range available through IKEA's website. Ordinary IKEA consumers are men/women aged 20-60 and are highlighted by the high overwhelming claim for buying fresh merchandise and items at affordable prices.
Boffo Toys, Inc. is a rapidly growing company that makes extruded plastic toys, primarily aimed at the market of 7-11 year-old boys. These toys are action figures, and include both real and mythical characters. The business has been expanding rapidly, and Boffo has decided that it is time to build a factory in China. Almost all of its competitors are already producing in China, and management has decided that it is time to jump on that bandwagon. Marlene Sampson, the CEO of Boffo, has been very successful, but she hasn't a clue how to begin working internationally.
We do our part, you do yours. Together we save money.” It manages to fulfill its social and business responsibilities by putting product design, customer satisfaction and business solutions right at the center of its functions. Affordability and low pricing of its products become possible through efficient reduction of costs in the supply chain and clever use of inexpensive resources and materials (Kelly, 2010, p. 1). Based on the Forbe’s list of Most Valuable Brands, IKEA ranks 41th, being the largest home furnishing store in the world (as cited in Lu, 2014). Behind the successful implementation of supply chain strategies, inventory and centralized planning, IKEA has certainly attracted and retained a wide number of loyal
Among the success factors is IKEA executed a cost effective approach concerning its business strategy. Through minimizing expenses and removing waste such as shipping, IKEA could put lower pricing details than competitors who have the same features. Moreover, IKEA developed a one of a kind product strategy. Considering consumer developments, they placed product priorities by placing a price by using a common matric which is a lot lower than the competitors. Furthermore, they motivated the designers and suppliers to be more competitive so that they can decrease the expenses and get a wider range of designs to select from.
The fact that Wal-Mart thrives in the Chinese market is because one of their biggest competitors named Tesco, which is the biggest retailer of the United Kingdom, left the Chinese market. Tesco sold their stores and this way Wal-Mart improved their market share. Also exceeded Wal-Mart in the implementing of e-commerce, which the Chines customers really like as a
Ikea’s concept relies on their market positioning statement “Your partner in better living. We do our part, you do yours. Together we save money” and it focuses on the product design, consumer value and the cleaver solutions ; by using low-cost materials in a very novel incoming way and minimizing the costs of their production, distribution and retail costs in a smart way so their customer can have the benefits of their lower prices and their well designed high quality furnishing. Ikea has a around 590 million visitor p.a to its stores all over the world, in addition ikea’s main marketing channel is its catalogue that is distributed world-wide as 191 million copies in a totally different countries with different languages. Its catalogue has pictures of their furnishing with more details about the costs, shapes and colors also, their delivery service that is considered to be on of their huge advantage; they deliver the products to the customers houses and they build it for them for free.
Most of the furniture is designed for customer assembly, it is also designed to be loaded into a cost-efficient packaging cube transport, conveniently to their customers and IKEA. The company is a very high volume retailers, so they often gets good prices what manufacturer procures. This allows the company to maintain the competitiveness of other retailers in the industry, because it continually seeking ways to simplify well supply chain and inventory management prices. High SKU velocity DCs use AS/RS IKEA store business from high-traffic facilities (focused on the 20 percent of SKUs that account for 80 percent of the volume) and low flow is more manual for warehouse support. Let the customer retrieve the package project on their own is a inventory strategy called "cost per touch."
’s past: ALDI is a Germany-based company which first made its debut in 1961, and the first ALDI store in the United States opened in 1976 in Iowa. Since then this company has continued to grow in success while maintaining its goal to offer quality products with incredibly low prices to the public. In order to achieve this endeavor, ALDI uses several different strategies that focus on helping people save money on common goods. One strategy they use involves differentiation in which they make a lot of their own products with their own brand name which allows them to save money. They also sell a lot of their products in bulk which helps both ALDI and its customers save money because the higher the quantity, the cheaper the price becomes per quantity