...Analysis ...................................................................................................5 2.1 Wider Macro-Environmental Analysis ............................................................5 2.2 Industry analysis .............................................................................................7 2.3 Industry Life cycle ..........................................................................................9 2.4 Competitor Analysis ..................................................................................... 10 2.5 Industry‟s Critical Success Factors ................................................................ 10 2.6 Opportunities & Threats................................................................................ 11 3. Internal Analysis .................................................................................................. 11 3.1 Starbucks‟s Strengths & Weaknesses ............................................................ 11 3.2 Evaluation of Starbucks‟ Main Capabilities .................................................. 12 3.3 Value Chain Analysis ................................................................................... 13 3.4 Starbucks‟ Main Internal Capabilities against industry‟s Critical Success Factors ......................................................................................................... 14 4. Starbucks‟ Current „Issue & Challenges‟ Diagnosis ............................................
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...June 2007 Mall Management – A Growing Phenomenon in Indian Retail Industry ExEcutivE Summary • The Indian retail market is expected to continue its growth trajectory into 2010. • Mall management has been identified as a critical factor for the success of malls and the retail industry across the world. • Mall management broadly includes mall positioning, zoning, tenant mix, promotions/ marketing and facility/finance management. • Currently, the Indian retail market lacks designated mall management firms. Large real estate developers and retail chains either have their own mall management arms operating as subsidiaries or have contractual agreements with international property consultants. • Till recently, mall management was limited to facility management by a majority of developers in India, leading to gaps in mall management practices. • Given the high future supply of malls and increasing competitiveness within the Indian retail market, developers must correctly address these gaps to ensure success. Mall Management – A Growing Phenomenon in Indian Retail Industry introduction Organised retailing in India witnessed a gross turnover of USD 320 billion1 in 2006. Although this figure is low compared with other developed economies, industry experts expect the growth rate of this sector at 35%2 until 2010. At present, about 100 malls are operational at a Pan-India level with a total area of 19 million sq ft. As per the current estimates, about 3003 additional malls...
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...com CHANGE THE GAME: A NEW MANTRA FOR FUTURE SUCCESS IN RETAIL INDUSTRY? A CASE STUDY OF TESCO’S SUCCESS IN KOREAN RETAIL INDUSTRY Dipanjay Bhalerao Assistant Professor, Indira Institute of Management, Pune Email: dipanjay.bhalerao@indiraiimp.edu.in INTRODUCTION Today’s exponentially growing retail market of around USD 15 trillion (2011) is worth watching as lots of new practices and strategies are being adopted by the retailers around the world. Today there is an increasing need for every giant company to look for the emerging economies for growth. But in that growth pursuit are they slipping from the home grounds or the established markets! Also when the retail company enters into new established markets for expansion, they need to do something innovative which also suits those markets. So what should the retailers do to balance the growth of the established & emerging economies for the expansion! What provokes this thought is Tesco’s rare success in the Korean market. Why to call it rare! As Korea is the retail market where the Retail Giants like Carrefour had bowed to the knees in the battle of retail with the Korean retailer E- Mart, Lotte, the Market Retailer of Korea. Knowing such a market back ground Tesco did something, which stormed the market & brought Tesco into the big league of Korea. Before going into what Tesco did, let’s learn about Tesco and the Korean retail battle ground in light of the global retail scenario. Tesco History Tesco was founded in 1919...
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...continues to be successful in a country that suffers inescapably from ‘Tall Poppy Syndrome’, while also preferring to exude an air of wealth and status. Analysing the External Environment The General Environment Demographic Australia’s population is over 20 million and the gross household income per week for the fourth highest quintile is over $1096.00. Twenty per cent of Australian households are represented in this category. Economic The Australian economy has experienced a number of recessions that have affected the retail industry and this has shaken shareholder confidence. The current interest rate is at 3 per cent and the AUD is much stronger on a global scale. Because Australian’s are getting more for their dollar overseas, many are opting to shop online. Socio-Cultural Australians are brand conscious and many wish to appear wealthy. Ninety per cent of Australians view themselves as being part of the middle income bracket. Also, the retail industry is dominated by women’s fashion. Australians prefer to shop in a department store format. Political-Legal In many cases, online shopping does not attract the GST, and this encourages Australian shoppers to turn to online sources to buy their goods. Liberal trade laws in Australia allow for easier acquisition and mergers with other businesses. This allows companies like David Jones to acquire less well know local businesses and expand. Global Consumer behaviour has changed greatly on a global scale. Online shopping...
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...Executive Summary Best Buy Co.,Inc. is an American multinational consumer electronics corporation, the company was founded by Richard M. Schulze and Gary Smoliak in 1966. Globally, with over 100,000 employees, Best Buy was named “Company of the year” by Forbes magazine in 2004. The company achieved its early success by using low cost strategy. As a leading company in the consumer electronic retail industry, Best Buy understands the importance of high quality customer service. The company’s lead market position is attributed to its differentiation strategy, reputable brand name, and series of acquisition. The external analysis indicates that the highest competitive force in the company is the internal rivalry and risk of new competitor to enter into the market. The performance of Best Buy and other competitors in the consumer electronic retail industry really depends on macro environmental factors. The biggest threat that most industries in the global market are facing, is the threat caused by the current economic situation. The internal analysis indicates that strength of the company is their reputable brand name, size, and market presence. Best Buy built its reputation by offering consumer high quality service and new shopping experience. The company expands its business into different market through series of acquisition. The company’s biggest weakness is that company have too much long term debt , which could damage investor’s trust on the company’s performance. ...
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...traditional department store was the dominant player in the American retail industry in the first half of the 20th century, which was designed to provide a unique shopping experience for consumers. However, only 50 years later, this mainstay of retail world was experiencing declining sales and serious questions were being raised as to whether its demise was imminent. Firstly, this case gives us a brief introduction of Macy’s, which is consolidated by 15 regional department stores with 810 store locations across the country. The company repositioned the consolidated Macy’s in the overall retail landscape in an attempt to differentiate the new company from its competitors. Secondly, the case provides a situation analysis of the factors Macy’s is facing, which includes the general economic environment, industry (product and services and segments), competition and consumers. Last but not the least, the case details not only Macy’s 2005-2006 consolidation and repositioning strategy but also Macy’s 2006-2011 post-consolidation. Questions 1. Complete a situation analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy? I think the following external environment factors could affect the success of Macy’s new strategy: a. General economic environment: the country...
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...Dheepak on Retail STVP 2007-002 STVP-2007-002 [June 12, 2007] Organized Retail “Inquilab” in India Current Landscape of Retail in India The Indian government does not recognize retail as an industry. In India 98% of the retail sector consists of counter-stores and street-vendors.1 With no large players, inadequate infrastructure and a small affording population that believed in saving rather than spending, Indian retail never attracted the interest of large corporations. That was till they realized that retail in India is a USD 320 billion dollar industry, growing at CAGR 5% and contributing to 39% of the GDP2 (See exhibit 1 for projected market size of retail in India.). It might seem almost nonsensical that this important sector of the country’s economy has been overlooked by corporate giants. One cannot blame them though. Indian retail has been a traditionally unorganized sector, dominated by counter-stores and street vendors (See Exhibits 2 and 3 for pictures). While retail employs a large sector of the population, most of these people are uneducated, unskilled individuals that regard retail as the preferred career alternative to agriculture. They never had the means nor will to develop the sector or expand their business. Retail never enjoyed the support of the Indian consumer. A miserly population that barely had the means to make end meet never treated shopping as a form of leisure. While individual retailers saw small gains, lack of infrastructure...
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... Walmart is a United States based multinational retail store. Walmart Thrive by dominating the retail market and providing broad quantity of product at a low cost. Walmart’s has repeatedly proved its successful company strategy in many occasions. This Global retail giant have burgeoned almost in all countries where it expanded with very few exceptions. To reinforce its global expansion process Walmart acquired 51% of Massmart, South Africa second biggest retailer. Although the merger of this two large firms unfolds Walmart’s way into one of the world’s biggest potential market it won’t be simple. Poor legal system and weak securities, cultural and infrastructure barriers, financials, rivals criticism, resistance from local group and government will hinder the merger process. Walmart needs to be prepared to face these challenges and develop a strategy. In order to deal with the challenges Walmart should: 1. Learn from previous mistakes in North Korea and Germany. 2. Make use of high GDP growth in Africa and rising middle class. 3. Use Massmart successful network. 4. Create a positive Brand and company name. 5. Do what it is best at “dominate retail market” * Section 2: External environment: Walmart and Massmart are a big part of global discount retail industry. Walmart is one of the world’s biggest retail industry operating in 14 different nations apart from United States with...
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...skin type and time of usage. The packaging of each product was captivating and informative and there was a very unique purpose for the information provided on the packaging as the strategy of L'Oreal was to push such products in retail outlets without dedicated sales staff which entailed that the consumer was to be educated via instructional packaging. To give a brief overview of the company, it was founded in 1907, in Clichy, France, by the chemist Eugene Schueller to provide advanced hair care products for customers of French hairdressers. Under the guidance and control of Schueller's family the company had evolved to provide cosmetic, skin and hair care products with the principle strategy of 'quality, innovation and geographic expansion'. Later the holding company 'Gesparal' and Nestle became major shareholders of the company which provided deep-pockets for it's innovation philosophy and geographic expansion plan. Within the context of L'Oreal, Plenitude existed to target consumers of skincare products via the mass market retail channels. Other ranges focused on hair care and 'Lancome' for cosmetic markets. The company's collaboration with channel partners was vital for the products distribution across markets. Relationships were essential with retail partners that ranged from high-class department...
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...Marketing Myopia by Theodore Levitt 1. Defining the market and understanding your customer (page 1). 2. Focusing on customers want rather than what the company wants (page 10) – Not neglecting marketing 3. Excluding a product from a lineup when it is necessary – reacting to the shift preferences of customers. (page 4) 4. “The view that an industry is a customer satisfying process, not a goods-purchasing process”(page 19) 5. Growing population and mass production is never a guarantee to increase revenue (page 5) Although Ralph Lauren has a solid foundation and understanding of customer’s style and want at the age bracket of 35 and up, he has yet to solidify a lasting name brand for younger age bracket. Through the discontinued brands such as Polo Jeans and Rugby brand, each attempt by Ralph Lauren did not have a lasting impression. The company’s style is greatly influenced by Ralph Lauren himself. At the age of 75, he still has the last say on what is in and what goes out of lines of product. He determines what is in style with his brand and what which style seems uncharacteristic with Ralph Lauren. According to Levitt on “Without a very sophisticated eye on the customer, most of their new products might have been wrong, their sales methods useless.” (page 2). Ralph Lauren’s view of a younger generation’s style may not be inside the “The world of Ralph Lauren”. The distinct preference of someone at the age level of late teens and early twenties might be large that...
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...over industry leadership from Electronic Arts. CEO Bruno Bonnell has decided to implement a name brand strategy whereby IESA will become Atari. Bonnell’s decision was presumably based upon the positive recognition given to the Atari name brand by teenagers, and adults in their 20’s and 30’s. The key issue facing Infogrames is whether name branding is a source of sustainable competitive advantage. Conclusion and Recommendations Infogrames’ implementation of a name branding strategy will not be successful for two reasons. First, the following analysis reveals that there are three key success factors for software companies participating in this industry. Infogrames’ acquisition of Hasbro does not help them to better meet any of these three objectives. Second, Infrogames has rationalized the acquisition of Hasbro based on the name branding strategy using the Atari moniker. The analysis, however, reveals that there is no competitive advantage gained on the software side of this industry for name branding. In short, consumers do not appear to make their game purchases with any regard whatsoever for the company that produced the game. As such, the acquisition of Hasbro, and the name branding strategy, will be a failure for ISEA because neither the acquisition nor the branding strategy contributes to the key success factors identified for this industry or to achieving a sustainable competitive advantage. Analysis External Environmental Conditions (General Industry): The...
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...information about the growth of retailing industry in India. It examines the growing awareness and brand consciousness among people across different socio-economic classes in India and how the urban and semi-urban retail markets are witnessing significant growth. It explores the role of the Government of India in the industry�s growth and the need for further reforms. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. The paper includes growth of retail sector in India, strategies, strength and opportunities of retail stores, retail format in India, recent trends, and opportunities and challenges. This paper concludes with the likely impact of the entry of global players into the Indian retailing industry. It also highlights the challenges faced by the industry in near future. INTRODUCTION The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country�s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards...
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...retailer J.C. Penney will be analyzed against the department store retail industry, with particular emphasis placed upon their competitors, Macy’s and Kohl’s. The major components to be discussed will include the general external environment (i.e. demographics, economics, politics, legal requirements, technologies and global expansion), the industry environment, the competitive environment, the driving forces and the key factors for success within the industry. In terms of the general external environment, the retail industry is a multi-trillion dollar business in the United States alone and maintains operations primarily due to consumer spending. Such purchases rely upon the disposable income of consumers and, as a result, the success of the retail industry is directly correlated to the economic status of the country. Due to the recent economic recession in the United States in 2008, customer confidence is not as high as it once was and, as a result, consumers are more price-sensitive in their retail purchases than they once were. As a result, retailers must be incredibly careful in their selection of product mix, their associated retail prices and the promotions they offer. Aside from price and pricing structure, another major component to consider in the retail industry is the domestic and global increase in the use of technology. Such shift in the availability and reliance upon technology has driven retail consumers to be more time sensitive but has also allowed them a greater...
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... and third-party digital content and applications. The company’s products and services included Mac computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X and iOS operating systems, third-party digital content and applications through the iTunes Store, and a variety of accessory, service, and support offerings. The company sold its products worldwide through its retail stores, online stores, and direct sales force, as well as third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In addition, the company sold a variety of third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores. The company sold to SMB, education, enterprise, government, and creative markets. The early success of Apple was attributed largely to marketing and technological innovation. In the high-growth industry of personal computers in the early 1980s, Apple grew quickly, staying ahead of competitors by contributing key products that stimulated the development of software for the computer. Landmark programs such as Visicalc (forerunner to Lotus 1-2-3 and other spreadsheet programs) were developed first for theApple II.Apple also secured early dominance in the education and consumer markets by...
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...the competitors. They have employed different Amazon branches in different parts of the world to lower costs. This allows Amazon to ship their products at a lower price from each point of shipment to the consumer. In recent years, Amazon.com has expanded from being just an online bookstore to an all around online shopping experience. They have coined the tag line "Earth’s biggest selection". Amazon has diversified into different websites. These are the Internet Movie Database (www.imdb.com), LiveBid.com, amazon.livebid.com, drugstore.com (an online retail and information about health and wellness), gear.com (online sporting goods company), homegrocer.com (online grocery shopping and delivery), pets.com (largest pet supply online shopping site), ashford.com (online luxury and premium shopping) and eZiba.com (online retailer of handcrafted products). Five Forces Model for Industry Analysis New Entrants The online bookstore industry that Amazon.com has pioneered in was, at first, very hard to...
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