Does Blue Nile’s business model result in a winning strategy? Blue Nile’s business model involves selling high quality diamonds at low prices online. The first hurdle for them was to make the buyer feel comfortable buying a high ticket item that has many characteristics that could affect the products quality. They effectively alleviate the consumers concerns by providing them with information and guidance during their shopping experience. The consumer is then able to educate themselves about what determines a diamonds quality and value.
Planning and Measuring Performance for Costco Corporation Roger Scmidt MGT/521 February 25, 2012 Roberto Guzman Planning and Measuring Performance for Costco Corporation My week 3 Organizational Plan Assignment was the Costco Wholesale Corporation. I identified its current goals as 1) control costs by reduction of inventory and careful selection of high quality goods and services and careful expansion of its’ domestic market. To elaborate, Costco has been very successful at keeping costs down by minimizing waste and storage expenses with a rapid turnover of its’ inventory. This is at least in part due t0 its’ ability to sell high-demand goods and services for very low prices. Additionally, Costco has a goal of 3) maintaining its employee workforce, as high employee job satisfaction has translated into exceptional customer service and low employee turnover (Costco, 2012).
In conclusion, Kudler Fine Foods needs an effective management team to operate successfully at their best ability by allowing them to implement their knowledge and skills to improve productivity around the business. Improving the website will definately allow the business to improve service therefore will atract more clients to increase revenue. Fixing this issue will improve many other areas of the business and become a better
Situation Analysis - Strengths It is always vital for any business to recognize its core competencies and build a successful business foundation around them to ensure maximum success. The same can be said for the newly emerging Nordstrom in the Canadian market. Nordstrom just like any company has its many strengths which make them successful in the fiercely competitive retail market today. As we are all incorporated in a present society where consumers are much more socially aware of different causes and concerns than ever before, this translates into a huge responsibility for many of today's distinguished brands and companies. Nordstrom has integrated many distinct social models and programs in its everyday operations.
Moreover, this will meet the needs of customers and sales personnel, as well as marketing strategies to promote the new chocolate bar. A positioning factor will allow a solid plan and image that anticipates customer’s needs. However, the appropriate pricing strategy is necessary to stay in line with competitors. The chocolate bar will be accessible within price and within stores which will offer the new product. The first element of the estimating tool is it needs to be easy to access, as well as aesthetically pleasing.
The high exchange rates will also allow for help in the pricing strategy. With business expansion to China, it is important that KFF takes into account the higher exchange rates in Canada to help increase overall profits from pricing. Monetary and Fiscal
Threat of New Entrants is weak. Entry barriers are high because of the economy, significant experience-based cost advantages, other cost advantages held by industry members (e.g., access to inputs, favorable location), brand loyalty (which comes from membership and other services), strong network effects and high capital requirements. 5. Substitute Products or Services is moderate. Warehouse clubs like a magnet for customers and pulling them away from other traditional retail channels such as supermarkets, department stores, drugstores, office supply stores, consumer electronics etc… All three warehoused club rivals - Costco, Sam’s and BJ’s – have similar strategies: Low prices, low operating costs, geographic expansion – Costco; Sam’s Club concept is to sell merchandise at low profit margins, which means at low prices to members; and BJ’s offers brand-name merchandise at prices that were significantly lower than the prices found at retail, supermarkets, dept.
A monopolistic Competition market has many sellers and provides good substitutes but differentiates their products from other companies. The nature of competition in a monopolistic market focuses on marketing, special features and pricing (Colander, 2010). Kudler Fine Foods has only a few competitors in the market that offers the same products and service to its customers. This market structure has negative and positive effects. A positive effect of Kudler Fine Foods in a monopolistic market structure is that they lead in the market and can increase competition between companies and make massive profits by setting higher prices (Colander, 2010).
For example, Wal-Mart’s promise is “Always low prices”, Disney theme parks promise to “make dreams come true”. It is known by successful companies that market share and profits will increase if they take care of their customers. In the new sense, marketing is about satisfying customer needs. Marketing can be defined as the process of creating value for customers and building strong customer relationships and in return capturing value from customers. 1.2.
Outsourcing brings proven benefits in the form of economic leveraging, increase in the quality of products and it provides a number of opportunities to less developed countries. For example in recent times, Americans are overwhelmingly supporting the major retail stores like Wal-Mart, Target and K-Mart. The reason behind this consumer loyalty is that it has become much easier to shop at these locations rather than the local mom and pop stores located on the corner of most neighborhoods. The benefit is that you can purchase everything on your shopping list from one location, saving you time, money and gasoline. In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost.