The frequent shopper program can become an effective tool in the attraction and retention of loyal customers. Rewards that can be traded for luxury items will have a great influence in customer loyalty and attracting new customers. A positive response from the public is important and in order to ensure that response, Kudler Fine Foods must find and develop a proactive way to approach the public’s privacy concerns. Preventing conflict with consumers regarding personal data and how it will be used is simply fixed by keeping the consumers aware of just how it is being used. The number one concern for Kudler Fine Foods must be security and privacy of their consumers’ personal
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. • BUSINESS CONCEPT • Vision and business idea • “To create a better everyday life for the many people”, this is the IKEA vision. Our business idea is “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”. • We work hard to achieve quality at affordable prices for our customers through optimizing our entire value chain, by building long-term supplier relationships, investing in highly automated production and producing large volumes.
To continue to be the largest retail store, Target has to make sure that their prices are the lowest and that the products they sell meet all of the wants and needs of each customer. Quality and quantity of merchandise is necessary to make sure customers stay loyal to the company and recommend Target to others for the products and services that are sold there. (Target, 2010) Conclusion An organization must assure that each customer is happy with the products and services sell to become and remain a profitable business. Advertising and sales are important to an organization, but recognizing what a customer wants and needs is most important. If a company does not have the products to keep customers satisfied, they may not
Rivalry in the grocery industry is a strong competitive force for several reasons. First, companies are using competitive weapons such as sales specials, coupons, company card to save additional money, and high use of advertising. Second, customers switching cost is low. Last, competitors are becoming equal in size and therefore able to achieve similar results. In this case, Winn Dixie, Publix, and Wal-Mart are the main competing firms within the industry in my area.
The distribution networks of the new companies are high and tends to affect the operations of JCP. Therefore, the company should build a strong distribution network so as to counter significantly the operations of the new companies that produce similar products. The “mom and pop” stores have been reported to resort in selling products online, otherwise they become obsolete. J. C. Penny’s SWOT analysis The strengths of the company are: * The existence of more than 1100 locations worldwide * Their quality products such as clothing, jewellery, beauty products and even footwear and furniture * The company also offers shipment of their goods for customers, which gives their customers the best experience in the end, hence attracts more customers. * The company also offers free haircuts for the children The weaknesses of JCP Since its competitors give similar products, the company is faced with limited market share 2. International business operations have also challenged the services of JCP due to the current emerging economies worldwide.
| ANALYSIS VIA PORTER’S FIVE FORCES MODEL The threat of new entrants in the online grocery business could lead to the company having to lower their prices and also, may have to lower their delivery fee just to compete with the newer companies that are trying to start out in the online business. They will also need to advance their technology within the company. The bargaining power of buyers allow for the customers that purchase loyalty from the company to pick and choose the products they need for the best price. This helps with the growth of the company; the company depends on customer loyalty to stay in business but this allows for the competitors to compete against one another. The bargaining power of suppliers hurts
This has been able to ensure them strict control over the price and quality of the products it offers. Furthermore, Trader Joe’s competitive advantage also comes from its human capital, they have created a culture of success, where equality exists and everyone’s opinions are respected, where they nurtured their employee’s talents in order to succeed within the organization. (Lewis 2005) How does Trader Joe’s design jobs for increased job satisfaction and higher performance? By creating a job description that requires “ambitious and adventurous, enjoy
Newell’s customers were mass retailers such as Wal-Mart, Kmart and Sears. These three powerhouse retailers dominated the market share of mass retailers. Consequently, these retailers were able to influence the type and volume of product delivered to their stores. This power also permitted them to influence price and the timeliness of supply. This external pressure incentivized Newell to optimize their supply chain and maximize supply efficiency, which led to systems like cross-docking.
The only counter-part of this aspect would be the fact that customers have to take time mounting the furniture, which Ikea considers being a source of fun and a social activity. The end products of IKEA are high quality furniture and in-house products, you have to assemble these yourself as is mentioned before which reduces the costs of these high quality products and therefore the price. End products of Ikea are mostly high quality furniture and in-house products adapted to all. Offering design at low-cost is Ikea’s main objective, and this is the result of adding each core competencies together. Everything is linked in a way that if one of the core competencies turns out not to be one anymore, the whole concept collapses getting Ikea in a dangerous situation.
Immigration: with a lot of immigrants from Eastern Europe there is a lot of demand for new goods to be put into the stores. Rate of change: The rate of which technology changes is fast at the current time which means Tesco have to keep in with it all. Training: Without the relevant training of staff they can't use the machines properly Online Shopping: Online shopping has made Tesco extremely popular whilst also making it possible to have fewer stores around the UK and making them able to deliver to places where people may not be able to get to the stores. Health and Safety Laws: This restricts to the things that Tesco's can do within their stores. Data Protection Act: They have to keep all data they take of their customers protected.