a. Strategic focus: GAP Inc and its sub brand Banana Republic have a global presence. Strategically, Old Navy is marketed mainly in Asia as the brand caters to the continent’s tastes, especially China. Old Navy recently debuted in mainland China which is the world’s second largest apparel market. It’s the largest growth initiative taken so far and Gap expects to reach sales of USD 1 billion in three years.4 Athleta basically focuses on the US Market is considered as a long term investment for the company as it is fast growing in the USA.
Massive progress in all aspect Short cut of employees is worrying Companies with a good design structure likely to have more patronage How well the organization adapts to change Change is unavoidable in every organizations, therefore the needs to embraced. Wal-Mart has had its share of difficulties when it comes to embracing change in a unit. Though, in my understanding, Wal-Mart made the best interchange in trying to consider change in the different practical
Target Corporation has many different strengths compared to its competitors. Target is the second biggest concession retailer in the United States. Target has a great reputation and strong brand that they spent time and money creating and still try to enhance through their current and future business decisions. About 97% customers are able to recognize Target with its bullseye logo. Target has the ability to create great relationships with customers, and Target has strong and unique marketing tactics.
Costco is an international retailer with 474 locations in 10 countries. Costco warehouses present one of the biggest and most high-class product category selections to be found under single roof. Costco takes advantage of online and mobile commerce and it is identified best practices in global e-commerce management. This report indicates Costco’s mission and vision, organizational structure, and their strength and weaknesses of competitive position, and performance evaluation, which is identified financial analysis. Moreover it includes identification of environmental analysis which PEST analysis, SWOT analysis and Porter’s five forces analysis.
For one, don’t forget that WFM is one of the largest public food and drug retailers in the United States. In fact; it is a Fortune 500 company, ranking number 232 on the 2013 list. Its size gives it the ability to negotiate better deals for its produce and products; which smaller organic grocery chains cannot. So; in the event of increased food costs; the whole industry will be under pressure but bigger companies will still have negotiation and pricing power edge over smaller chains.
Moreover, company’s CEO Dov Charney was considered as unreliable and he faced harassment allegations. In addition, there was financial weaknesses which company could not handle and as a result by the end of 2010 American Apparel was almost bankrupt. American Apparel’s strategy of coordinating its business only in Los Angles rather taking into cheap labor markets in Asia and cutting manufacturing costs is another key factor of company’s high costs. This strategy is argued to be the CEO’s incapability to oversee what
On the contrary, because 18% of all retail sales in the United States are made in Walmart stores, the company has enormous bargaining power over its suppliers. Most suppliers have to decrease their prices that many can barely afford, because they are always pushed by Walmart to be more efficient and offer as low prices as they can. Besides, Walmart is so important to suppliers of nationally branded products that it is able to demand significant discounts even from them. Walmart has become a brand that is more powerful than the brands of
1.3 HISTORY, GROWTH OF RETAIL INDUSTRY & GLOBAL RETAIL SCENARIO: Global Retail Scenario It is no secret that Retail has a huge role to play in the global economy. That’s why it is not surprising that in developed countries retailing is one of the most important industries. In developed economies, modern retail or organized retail has a 75-80% share in total retail as compared with developing economies. Table: 1.1 Top 10 global retailers by revenue Retail Revenue Rank Name of the company Country of origin 2012 retail revenue (US $ mn) 2012 parent company/ group revenue (US $ mn) 2012 parent company/ group net income (US $ mn) No. of countries of operation 2007-2012 Retail revenue CAGR 01 Wal-Mart store U.S. 469,162 469,162 17,756 28 4.4 % 02 Tesco U.K. 101,269 102,889 190 13 6.2% 03 Costco Wholesale Corporation U.S. 99,137 99,137 1767 9 9.0% 04
The general issue in America is that we spend too much money on things we can't actually afford. But all that matters to consumers is that the public thinks that they can. Consumerism is self-destructive because consumers allow advertisements, materialism and shopping habits control their lives and income. Advertisements are in more control than we realize. As a community, we believe that we purchase items because we want them.
Therefore, a strong research and development (R&D) of this company needed to commercial a new products and improve the existing products. WEAKNESSES The weakness of Nestle company is much of it sales depend on a few well-recognized product. Hence, any sudden change in consumer taste would affect the business. Next, grocery sales that sold in giant retailer such as Tesco which have the ability to reduce the price drastically without any deal from Nestle.