Under the retail method, retailers only have to keep track of retail value of goods available for sale, retail value of goods purchased and total costs. CAUSES FOR STORE’S OBSOLESCENCE PROBLEM Some major causes of the store’s inventory obsolescence problem deal with supply and demand. The University Store never knows what book a professor may recommend or require in following years; therefore, all those books are then futile because there is no demand for them. Books are always changing and become easily outdated, which means bookstores have to be careful when ordering a large number of books. Another cause could be that those books can be found elsewhere online for cheaper.
The author claims “in a word, the regional shopping mall has become a kind of civic center, a point of attraction for millions of Americans, whether they choose to buy something there regularly or not” (412). Lewis effectively uses interviews, logos, and emotional appeals, but struggles to include enough statistical information to support his claim validly and logically. At the beginning of the article, the author uses a limited amount of logos to support the claim that fails to display a high level of efficiency. The shopping mall proves to be a key attraction for the elderly to participate in the walking program. “The program encourages the elderly to walk laps and to record their own progress” (414-15).
Of course, this doesn’t go for every single person, but on the whole the people are very polite and kind towards you. In London if you are a few pounds short when buying a few things at the supermarket, the person behind you will give you the remaining you owe just to stop you feeling humiliated. In Arlington, multiple times I will be humming a song minding my own business in Wal-Mart when a random man will come up to me and ask me what song I am singing. People in both towns are so open and helpful, making the society a happier and nicer place to live. Overall, London & Arlington have many more differences than similarities, but the towns are on different sides of the world where there are different customs and different views of what standard life is.
Each day, you spend a small segment of your life making decisions and shaping the world in even the slightest of ways. You give the woman behind you in line your supermarket coupons, you thank your car salesman for his time. You, this swarm of energy and emotion, are somehow able to come down from your high during the day and do something nice. It’s a beautiful thing, being human is. This omnipotent God has no say in what you do; you are the one overcome by the desire to act.
Problem: Best buy faces a lack of competitor advantage against the virtual retailers which is perhaps the leading cause of decline for them. Although the company currently operates in thousands of locations, electronic big box stores are becoming obsolete due to the cheaper, faster, more convenient and less expensive products that can be purchased from an online retailer. In addition, virtual retailers “don’t need to own and operate expensive real estate or staff their stores even when there are few customers around, or maintain inventories for display purpose.” In contrast, retailers may still hold an upper hand on certain products that consumers require to see and hear in person and to acquire the knowledge of an experienced expert. The large amount of products at Best Buy allow the consumer to do their research in the store but in-turn purchase them at a lower cost online. Alternative Solutions: There are three strategies Best buy can use to potentially increase revenue and decrease the current disadvantages.
Definition Showrooming describes the practice of exanimating and testing products in traditional brick and mortar shops without purchasing it, but making an online purchase in order to find a lower price than the one from the original brick and mortar retailer. This is possible through different overhead cost from online stores. Caused by this practice, consulting by employers of traditional retailers is used and thus brick and mortar shops suffer from fewer sales, especially retailers who offer mostly electronic goods. On the other hand, retailers who sell mostly their own brands are less affected (e.g. Apple).
In most cities, a few Wal-Marts can be found. Another advantage over the competition is being open 24 hours because most competitors cannot stay open as long. The competition at night may consist of select pharmacies and /or general stores, but they are usually more expensive and carry smaller selections. Wal-Mart notices all income levels shop for their necessities, but they want to revamp the look and provide an upscale appearance to attract all type of clientele. Wal-Mart’s has a competitive advantage because of their incredible logistics system.
The mall was created so people can get caught up in this world of shopping and they lose track of reality. For example, Guterson says, “There are, one notices, no clocks or windows, nothing to distract the shoppers psyche from the alternate reality the mall conjures”. This sort of set up will let the people lose track of time and they would not know how long they have shopped for. This all leads to, more money being spent on the products within
Now add on a hefty credit card bill to that amount, and you will find yourself in an extremely difficult situation financially. Credit cards should be used as an alternative tool for purchases. If food, clothing, or books is needed, charge it. Unfortunately, credit cards are not that evident. Once approved for credit, there is a limit of course, based upon yearly income.
Porter's Five Forces Model Bargaining Power of Customers: LOW Wal-mart faces the weak intensity of the bargaining power of buyers in the retail industry environment. The large population of buyers makes it difficult for them to impose significant pressure on retail firms. • Customers usually make small purchases • A large number of customers • Wal-Mart;s main customers are individuals • Consumer could shop at a competitor who offers comparable products at comparable prices, but the convenience is lost. Bargaining Power of Suppliers: LOW The bargaining power of suppliers has weak intensity in the retail industry environment. There are many suppliers in the retail industry.