To build a Bass Pro Shop Outdoor World it requires a big initial investment. Once the stores open there is a high overhead and a low inventory turnover. Because of this break-even sales must bring customers from a large trading area. Although a customer can buy comparable items from discounters such as Wal-Mart customers rather buy from Bas Pro Shops. 1.
Urban Outfitters Continuing Case Study: Marketing a business. Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image. Wal-Mart is better known for their lower prices and to do this they buy in big volume. Whereas the trendy market merchandise is more expensive; although Wal-Mart could buy this type of merchandise they would have to charge more. That is not what they offer or how they have in the past represented their company.
They are often left with no choice but to give them the money to build within the city limits because nothing keeps this corporation from buying a plot of land just outside the city limits and acquiring the same profits with 0% of the sales tax going back into the town itself. It really is a lose-lose situation. The same subsidies that are given to these Superstores to build is often taken from
Small size could be due to lack of fund, technical knowledge, skills and experience. Therefore, MacVille coffe project could be a small player as compared to other companies who are already in the business with lot of supply chains and customers loyalty. It is important to identify and assess our size as risk to initiate to venture into the business. 2. Lack of skilled and trained staff Although we have committed and trained staff at the current moment but such commitment and skills may not meet the required expectation with the change in technology, customers need, product diversification etc.
Most owners of a chain stores are said to be only interested in a making a profit instead of supporting the local community. By closing this store, the social responsibility has not been met, because it would increase the unemployment rate in the community, leading to more crimes. A growing number of consumers are becoming more aware of the products they buy, but also how the goods and services they buy have been produced. Consumers are concerned about human rights, environmentally harmful production and animal welfare issues that revolve around products they purchase. Customers are prepared to buy products from companies that have retailers who act ethically and socially responsible when purchasing products to sell in their stores.
It will determine the location of a business, the personnel, and the business’s clientele. When someone plans to start a business, and has a limited initial capital, they may have to settle for a locale that is not as eye-catching as others. Whether it is an office or a store, prices vary depending on location and size. Personnel are also an important aspect of developing companies. An understaffed company due to lack of initial funds will not be as efficient, and may lose customers.
Walmart’s low prices are a direct result of their outsourcing of jobs, which negatively affects the United States’ economy, even though may seem beneficial. The company also takes away from many smaller, local businesses, because of its lure of lower prices and benefits. Walmart’s largest principle is that it offers goods at the lowest possible price for their customers. in order to achieve this, not only does Walmart pay its workers low wages, but it also purchases its products from companies that outsource their factories and jobs. Outsourcing refers to sending jobs overseas because it is cheaper to produce the good there instead of in your home state.
If he relocates one of the stores he could also lose customers as well. The internal weakness include not wanting to hire outside of his family and the timing if he relocated one of his stores which he could lose current and potential customers due to the opening of West 9. He is not sure of his ability of running two stores either . External perspectives The characteristics of this industry are that with similar companies that are larger it greatly affects smaller companies with the cheaper prices that these companies can offer to customers. The firm’s strategy for differentiation is to be able to provide exceptional customer service by react quickly to competition
Kudler may not have the resources to launch advertising for the company because problems have occurred because of the lack of experience to the target market. Kudler needs a target market to allow the company to focus on marketing dollars and brand communication on a exact markets that is more likely to buy from than or other markets. This is a much more reasonable and efficient, and successful way to make potential clients and generate business. Kudler chain of stores makes them a distinguished factor in the market. This is why a lack of customers will have a huge affect on the growth of the company because of the decrease of the sales in the
A trendy, counterculture image is being known for producing products that are different and one-of-a-kind. Sears or Wal-Mart cannot effectively create a trendy counterculture image because they produce goods on a high volume and low profit scale. They produce their products in large, uniform quantities for a low price. The mass production of businesses like Sears and Wal-Mart make possessing a counterculture image unachievable. They would not be able to provide that exclusivity niche businesses can because they sell an array of niches instead of just one.