UGA TXMI 5250 - Exam 2 Study Guide (23 pages)

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Exam 2 Study Guide



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Exam 2 Study Guide

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Pages:
23
Type:
Study Guide
School:
University of Georgia
Course:
Txmi 5250 - Global Retail
Global Retail Documents

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TXMI 5250 Exam 2 Chapter 4 Evaluating the Competition in Retailing Models of Retail Competition Many people believe that local retailers cannot compete with the large discounters but this isn t true o Ex small appliance store owner would benefit by understanding that these chains usually carry only a limited selection within a product category and provide little personalized or specialized service o Other chains have created a niche that has worked well against these discounters ex Dollar General o Also smaller stores can learn that their store would not be price competitive in certain areas ex health and beauty items and they can offer more products in areas that the local WalMart doesn t have as much merchandise in No retailer no matter how cleaver can design a strategy that will completely insulate it from competition o Competition will always remain as other retailers seek to copy a profitable strategy o Competition in retailing involves interplay of supply and demand The Competitive Marketplace o A retailer must be clear about what advantages it will emphasize and where its resources will have the greatest impact in attracting and satisfying customers o Retailers compete for target customers on five major fronts or factors The price for the benefits offered Service level Product selection merchandise line width and depth Location or access overall convenience of shopping the retailer Customer experience the customer s positive feelings and behaviors in the purchase process o Retailers must clear a minimum threshold on each of these criteria in order to stay in business o They also must distinguish themselves in the marketplace by dominating on one key factor and differentiate themselves on a secondary factory Market Structure o Pure Competition Occurs when a market has homogenous products and many buyers and sellers all having perfect knowledge of the market and ease of entry for both buyers and sellers Each retailer faces a horizontal demand curve and must



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