Despite high price for many of these goods, the brand popularity stable increases. The fashionable wear of the company, made from new, high-tech materials. This allows LULU to give premium prices to its customers. The company continues to have one of the highest sales in the retail industry. It has a leadership position in the growing athletic wear market.
I would argue that Wal-Mart’s employment practices are immoral based on different philosophies which are utilitarianism and justice. Utilitarianism seeks the greatest good for the greatest number of people. The “good” here can be referring to “happiness” (Fraedrich, 2013). Based on utilitarianism, Wal-Mart’s ethical standard is immoral as the consequences failed to benefit the employees. Although by underpaying the employees, the stakeholders would gain more profits, however it has resulted in significant unhappiness among the majority of the employees.
As a result, these alternatives may find it difficult to enter the food retailing market as Tesco has created a hurdle for them to do so. Nevertheless, the threat of substitutes for the non-food products, for example apparels, is relatively excessive. It is proven that as the financial downturn triumphs, consumers will be leaning to the cheaper prices. Therefore, Tesco is an intimidation to the specialized stores for these non-food items. Competitive
The disadvantages of promotion is people think they shouldn 't buy just wait promotion to buy and another disadvantage Image quality may become tarnished If promotions in the rare category of products, promotions can have a negative effect on the image quality. Consumers may begin to doubt that maybe the product has not sold well, and the quality of the product is real compared with the price or the product is likely to be discontinued because they have become
A firm with this strategy competes with any other firm and gets high profits because of high level of productivity and capacity utilization. Also, they have huge capital investment and have a huge market share. Few examples are Wal mart, Shoprite, Air Asia. These are success stories of Cost leadership strategy. 5.
Strengths Challenges Strategies to deal with challenges Pick n Pay have strong brand equity Pick n Pay has strong brand equity due to long heritage Pick n Pay have online growth Pick n Pay sales increase therefore increasing profit. Pick n Pay have loyal customers Pick n Pay have high customer loyalty due to pick n Pay focusing on good service. Pick n Pay have good corporate social responsibilities programs (CSR) and sponsorship Pick n Pay’s CSR programs and Sponsorship has improved Pick n Pay’s reputation therefore improving its brand equity and family store image Skilled workforce Pick n Pay have trained their workers Pick n Pay have good prices Pick n Pay have a cost advantage due to own brand Weaknesses Challenges Strategies to deal with challenges Pick n pay has bad communication Pick n Pay must find ways in order to have good communication between employees, employers and consumers Pick n Pay is not diversified enough Pick n Pay must expand and/or vary the range of
Mr.price group limited was founded by Laurie Chiappini and Stewart Cohen. The current CEO of Mr.Price group limited is Stuart Bird. Mr Price consider themselves as a “Fashion value retailer” and sell mainly for cash. They are also one of the fastest growing retailers in South Africa. Mr.price ensures customers that they offer fashionable merchandise at an excellent value.
Disadvantages of privatization 1. The problem of monopoly The first drawback will be a potential of monopoly by big companies. Although there are oppositions argue that privatization can introduce market forces and competitions which can motivate the improvement of services and performance, there is still a possibility for monopoly by the big companies which will dominate the markets and hinder the freedom of economic market. As the LINK is a private sector, their ultimate goal is always profit maximization, they will collect higher rent when comparing to the Housing Authority. Those small individual tenants are forced to close down as they cannot afford the increasing land rent, the shops remained will be those big-chain shops.
Strength: 1.Cost advantage due to economies of scale 2.Rapid Online growth is boosting sales through a new channel 3. Customer loyalty is high because of strong focus on good service 4.Strong brand equity developed due to long heritage and presence in over 10 countries 5.Strong efficient Supply chain managed by 50000 people 6.Reputation management is done extensively by the company including a major rebranding in 2007 7.CSR programs and Sponsorship have improved the company reputation improving its brand equity and image as a family store Weaknesses: 1. Less marketing communication to public about their image 2. The large size had made the company complacent in its operations leading to loss of major market share 3.Slower rollout into emerging markets Opportunities: 1. Emerging markets and expansion abroad 2.
This shows a strength in the ability of their administration. • Its greatest strength lies in its sales turnover being 80% cash and the remainder credit • The clothing remains affordable in comparison to other large retailers like Truworths and Edgars, in keeping with the word value in its mission statement. Weaknesses: • Mr Price has been accused of producing poor quality garments due to the poor quality of materials. This has resulted in loss of faith from customers. This weakness places responsibility on the purchasing function of the micro environment to ensure better quality goods and raw materials are sourced out and negotiate favourable rates.