Risk Factors of Bloomingdales

592 Words3 Pages
Risk Factors of Bloomingdales Risk factors play a major role in today’s economy. Since we are stuck in the stagnation period and do not seem to be recovering for quite some time, businesses have to come up with a proper marketing plan that will help sell their products. All businesses suffer from the same risk factors. Some common risk factors include: product quality, price, brand loyalty, competition, managerial skills, etc. Many customers are shopping at lower priced stores because the economy is not allowing them to spend extra money. At these lower priced stores there are lower quality products. The consumer then has to make the decision on whether or not to spend the extra money to purchase the higher quality product with the higher price or the lower quality product with the lower price. Going along these lines, some customers will pay any price to have the name brand that they like. Many different stores offer the same name brand and you have to make sure your store offers the lowest price. This is the manager’s job. The manager controls all the marketing of their products and they have to make educated decisions on how to market. The company I am following is Bloomingdales. Bloomingdales is a higher end store that sells high quality products at a high price. They are currently losing many customers because the economy will not move out of the stagnation period. Right now the customers need to be saving their money in case they need it later to pay bills rather than spending it on clothing. Many consumers are starting to shop at stores like Macy’s or Kohl’s where they are offered almost the same quality products at lower prices. Some of Bloomingdales biggest competitors are Neiman Marcus, Saks Fifth Avenue, Bergdorf Goodman, Barneys New York, Lord & Taylor and Nordstrom. These companies all sell high class name brands. The brand names include: Coach,
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