retail store - strategic management - yaazdan katrak.pptx

Strategic ManagementASSIGNMENT 2

RETAIL DEPARTMENT STORESDone by:Yaazdan A. KatrakCMBA1 - 1309

Value Chain

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. 

Value chain adds value to a product during the stages of a supply chain.

Linear Value Chain

External Factors that affect the Retail Industry

Political – how changes in government policy might affect the business e.g. a decision to subsidize building new houses in an area could be good for a local brick works.

Economic – how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and global economic factors.

Social – how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population.

Technological – how the rapid pace of change in production processes and product innovation affect a business.

Legal – the way in which legislation in society affects the business. E.g. changes in employment laws on working hours.

Competitive Strategies to beat the best

You need to decide what you are trying to achieve with your business.

"Why should a customer shop in my store?" 

To be successful, every retail business needs to add value to its products by adopting one of three basic strategies and offerings: the greatest assortment, the lowest price or the best service.

Greatest-assortment strategy involves dominating a product such as toys, office supplies or furniture. 

Lowest-price strategy involves economies of scale and driving every possible cost out of the business.

Best-service strategy comes to you by default, it can be a very successful and a profitable strategy but you must be prepared to make service the heart and soul of your business. 

Thank-you !!