Also the low switching cost and consumer awareness of shopping around to find the best bargains increased competition around stores to capture customers. Corporate stakes were high for Wal-Mart, this can be seen in its earlier years (Ben Franklin stores) where they were losing
Pest Analysis Future Legislation There is talk of new legislation where alcohol prices will increase to reduce people drinking too much. It has long been thought that raising alcohol prices through taxation will reduce alcohol sales and related problems associated with drinking. Recession With the way the economy has gone of recent, Tesco are auspicious that they have not been as badly affected as some retailers by the recession. Tesco have marketed themselves to sell to everyone and to show this they offer a range of products from and services from value to finest prices as a result appealing to all segments of the market. However the positive effect of a recession for Tesco is that a lot of customers eat out less and eat more at home which give Tesco an opportunity to increase their output and come up with cheaper alternative meals to getting a takeaway or going to a restaurants.
For example, greed causes businessmen to compete with other businessmen, thus, keeping prices reasonable and forces them to keep up with consumer demands. But then greed could cause businessmen to make not so smart decisions to make more money which may affect everyone in the economy negatively. But I still believe that greed is good for capitalism in the US. I
While other competitors, such as Target, operate in the same market trying to attract consumers looking for low prices and conveniently giving customers the access to a one stop shopping store. Though the largest company and one of the most successful, Walmart can make improvements. The key problem for Walmart has to do with the negative treatment of employees causing a high employee turnover. Walmart’s success has come from its well know low prices and extreme variety of products allowing customers to get all their shopping done in one place. The company continues to employ new IT systems to track sales and allow managers to compare their store’s success to others.
The rules of marketing may have changed but it definitely does not mean that IM is the only answer for marketers. For a company like HubSpot, whose products appeal to a certain type of customer, specifically people who are familiar with 2.0 and know what product they are looking for, IM is effective because potential customers are already familiar with the platform and are shopping around. IM is also good because it is cheaper and provides very informative details on the company’s products. However, if a business only offers products which appeal to older or specific customers who are not familiar with web 2.0, IM will not work. One example of a business where IM will not work is a business that that sells electric wheelchair.
Deleting players from the distribution chain can be risky, but results in a reduction in operating costs and improved margins (Strickland, 1999). Dell’s focus is listening to the customer and providing a service that provides the needs and wants of the customer. Michael Dell encountered resistance in his management teams. The management teams forced their views and opposed to listening to what the customer wanted and needed (Krames, 2003, p. 59). Dell survived the technology bust of 2001, and improved the company’s market share by providing a better-quality product and beat the competitors through quick delivery and meeting the customer needs (Krames, 2003, p. 63).
This forced the corporation to decide whether to locate production close to their target markets, where significant labor costs are necessary during production; or in a region where production and labor costs are significantly cheaper due to unregulated labor pools in many overseas countries. Choosing to place production where there is low cost labor provides an opportunity for increased revenue, as well as profit maximization, but raises ethical concerns for the company. Despite the great financial success of Nike’s international expansionary process there were also many failures. These failures stemmed from the use of low-cost labor, a lack of competition by rival corporations, and several unsuccessful advertising techniques. Consequently, the
Wal-Mart offers valuable discount to their customers while still offering brand name and fashionable product. Hence Wal-Mart was able to capture a lot of Target customers and increase their sales and profits, while target was seeing no profit growth and a steep decline in sales. * General Public – The Company was not concerned about how the general public viewed their products and services. The public image of the company affects consumers buying power. Wal-Mart sales also increased because the public viewed them as a better place to save money in the recession that they were facing.
… New Depth Sounder, Project 901 Current problems on New Depth Sounder Even though customers’ opinions are useful, customers usually see things at present. They are not necessary to image what new technology should be, a fact that will restrict company’s development if company relies on their opinions during the product development process. Using marketing research from current users is a good reference, but to reach out those potential customers having merely knowledge of Techsonic’s products and to broaden the market penetration will bring in more revenue. Furthermore, even though Techsonic carefully gather what customers need and invest tons of money in advertising and marketing research, they are gradually losing their market leadership in some field. This could result from a disruptive technology provider providing something beyond customers’ imagination and gain their satisfaction.
Aesthetically they keep cost down by not going overboard with interior design and comparatively have low labor costs. The strongest competitive force is the rivalry among sellers, buyers and suppliers. The possibility of these large wholesale companies being affected by potential new entrants is quite low. Because we are talking about significant amounts of quantities, the wholesale club industry will not be impacted by other industries offering substitute products. I think Supermarkets have a minimal competitive impact because they try to reach a different target market, even though Supermarkets and the wholesale club industry both carry similar products.