They are used by people who aren’t buying many items and it makes the buying process for the customer a lot quicker. Even the smallest Sainsbury’s stores sell a lot of items; this is why shelves are needed in stores. They are used to hold stock and to make it easier for customers to clearly see what Sainsbury’s are selling. Freezers are a necessity for Sainsbury’s because without them they wouldn’t be able to offer any frozen products. If they couldn’t sell frozen products, people would most likely move to another supermarket with a wider variety of products on offer.
("Store Wars," n.d., Big store, business practices section, para. 1).The low prices may be great for the economy, but that's about all walmart is doing for America. For people who work at Walmart, in order to make ends meet, they usually have to work at two different jobs. Their significant other usually has to work, too. Not enough money and too much stress lowers the quality of life that people have, and their standards of living also drop, as they are forced to get by with cheap, low-quality items (Nickels, McHugh & McHugh, 2010).
Boots have to make sure that they are able to meet customer expectations P4 - Identify the competitive factors in the retail environment a selected organization faces Bargaining power of buyers: Customers are powerful potential buyers as they can switch easily and doesn’t cost them much as they have stores in easy locations. However supermarkets will have to reduce prices in order to attract customers. There are a lot of small sellers and few large buyers as the buyers buy in large quantities which show that they are powerful. A single buyer is a large customer to a firm as they buy more. Buyers purchase from multiple sellers at once, such as customer stores.
Instead of going to the clerk, one can go to the ATM and withdraw money. One would not care how the currency notes are, because the value will remain the same irrespective of the condition of the notes. Same goes with a commodity, I don’t care if its manufactured yesterday or the month before. But I can’t say the same thing when I am buying vegetables; the fresher they are the better. Gas Jockey: Gas jockeys disappeared because gas-stations found it was cheaper to let the customer fill up gas themselves and pass on
Optimistic effects include quicker operations, undertaking multiple operations with fewer personnel and accessibility to the consumer base. Systems that take inventory and POS systems all help to achieve these optimistic goals. Antagonistic effects include technology failures and security issues with more vulnerable technologies that are accessed through unsecure networks. In the competitive retail environment, it is imperative that companies utilize these technologies regardless of the negative annotations. It is then important for managers to find the best defenses against technology failures or security breaches.
For example Tesco or ASDA. Median sized supermarkets can be sited near town centres or large ones can be sited near the edge of housing estates. They choose to open here as people need food and drink every day so having a convenience store near a housing estate is profitable. Supermarkets sell a lot items in one place it makes shopping very easy so the need to go to different stores lessened so because of this small town centre stores are getting less and less business this is causing more and more of these stores to close down. Some superstores for example ASDA have a clothing section and in this case a large part of that is for school uniform.
Company G has prided itself on cultivating relationships with it's suppliers built on honesty, confidence, and allegiance in order to facilitate profits for both parties. However, as popularity may grow for the product so too may the market and suppliers might consider increasing costs, in which case a fixed contract would be discussed. Threat from Substitutes – If the Little Wonder does prosper their may be threats from substitutes from larger companies that are able to produce a similar product on an increased scale thereby reducing it's price and making it difficult for Company G to compete. SWOT Analysis A SWOT analysis has been done for Company G and the outcome is clearly positive. The details of that evaluation: STRENGTHS Dedication from management, employees, and suppliers 1.
Because of their consistently low prices on products, their competitors have lowered their prices in order to compete with Wal-Mart. In turn, this has driven overall prices down. Wal-Mart has also created many new jobs and increased tax revenues. Businesses that are located next to Wal-Mart stores have also benefited from them because customers who are shopping at Wal-Mart will stop at other businesses before or after shopping at Wal-Mart ("Walmartstores.com: Economic Opportunity"). Because of the impact Wal-Mart has had not only on the retail industry in the United States, but also globally, I think it is safe to say that Wal-Mart is a very secure company.
SNAP national participation in June 2012 rose to 46,670,373 people, an increase of 173,162 people from May 2012. The problem with this is that while there are some honest people out in the country, the majority of people I see abuse and fraud the system claiming that they need help as much as the next person. Food stamps aren’t around so people can have a field day at the grocery store any time they want. They are around for people who are having a hard time feeding their family! It is not those who like to cheat and take the easy way out of things.
One of the biggest areas that have seen a great change in consumer spending is grocery stores. More and more people are switching from name brand products to off brand and store brand products. People are also opting for discount food stores, such as ALDI, for cheap variations of the food they love. Lastly, one of the biggest new trends is using coupons. With the use of coupons people can reduce their final bill, and save money.