Premium Essay

How to Smaller Store Should Compete with Bigger Retail Stores

In: Business and Management

Submitted By jtpeyton
Words 510
Pages 3
How to compete with a retail box store

A competetor analyis would have to be done first. There is almost no way a small hardware store could ever compete with big retail selling the same items. Most big retail stores buy bulk so that that may sell at a lower price. Small hardware stores can not keep that much inventory alone in their stores. So seeing what your competetor and you share as far as price point on the items the small store carries would be essential. He would be wise to avoid as much direct competetion as possible.

I would recommend is to carry better brands than whats at the big retail chanis. Lowe’s and Home Depot do not carry what most people think of as a “quality tool“. By stocking your shelfs with items such as speciality tools that the retail chains may not have in stock often and tools of better quaility than the box chains cheaper, but easily more disposable product you can earn a name as being a more reliable hardware store where you can buy tools that last. He may have to restructre his business but this could be his new target market. Opening up a online store could prove beneficial. He can now house inventory through a distributer but not store it in his buildings. People will still associate his good name with the online store.

Just as important he should be marketing his standing in his own community. The store should be marketing its years in the business community, If it donates to charity work or helps the local sports team it should be advertised. The local sports team should have a very big advertisment of his store name to show he is part of this community. The stores customer service and product knowledge also needs to be top notch. It’s what they need to be known for now. Many customers just want to get what they need and leave without walking through a maze of a supermarket. If the owner and sales staff show superior...

Similar Documents

Premium Essay

J.C Penney

...J.C. Penney There is a major issue when a giant retail stores announce they are closing some their stores. However, the issue becomes a management issues when they replace the CEO of the company. JC Penney retail store has a management issues that are as big as their overlarge stores. They are replacing the CEO in hope to correct management issues that has plagued the giant retail store. The retail store giant J.C. Penney announced that the CEO Myron E. Ullman will replace with a new CEO Marvin Ellison. This is a hope that Marvin will slow down and hopefully turn the decline of the giant. JC Penney also has announced they will close forty stores nationwide. These closures are due to issues with JC Penney managing large number retail stores. JC Penney stores are underperforming because the retail store became too large to manage. According to Gray Strauss to has quoted consumer psychologist Kit Yarrow “”Consumers have lost their enthusiasm for trolling through massive stores hunting for a bargain. They can do that online” “. This is an indication that J.C. Penny has failed to keep up with today’s shoppers. It also has failed to attract young generation shopper. Young generation shoppers’ lives are surrounded by smartphones, tablets and computers and are doing most of their shopping online. The retail store has depended on clearance to attract and attain customers; however, these clearances can be easily found through online retailers. Therefore, customers are skipping......

Words: 1377 - Pages: 6

Premium Essay

How Amazon and Same-Day Delivery Will Effect Retail Commercial Real Estate

...1 How Amazon and Same-Day Delivery Will Effect Retail Commercial Real Estate by: Ryan Mitts FIN 5433 Dr. Tony Ciochetti 03/30/2013 2 TABLE OF CONTENTS EXECUTIVE SUMMARY....................................................................................Pg. 1 INTRODUCTION.................................................................................................Pg. 2 THE STATE OF RETAIL REAL ESTATE.........................................................Pg. 3 THE THREATE OF E-COMMERCE TO RETAIL REAL ESTATE..............Pg. 4 IMPLICATIONS OF SAME-DAY DELIVERY.................................................Pg. 7 THE FUTURE OF RETAIL REAL ESTATE.....................................................Pg. 9 CONCLUSTION...................................................................................................Pg. 11 REFERENCES......................................................................................................Pg. 12 1 EXECUTIVE SUMMARY Real estate throughout the world suffered a huge shock during the financial downturn of the late 2000's, and while the vast majority of other sectors are on the mend, the retail sector still seems to be having a bit of trouble getting back to where they were before the crash. A large reason for this has to do with Amazon and other online retailers taking up a larger and larger share of the available sales forcing many companies into rethinking their business plan, leading to store closures, downsizing, and......

Words: 5333 - Pages: 22

Premium Essay

Baskin N Robbins

...Few answrs on how to reach out to public and improve channel 1) find out local vendor for outsourcing to save on logistic cost. 2) Expensive/premium product should have outlets in leading malls. 3) tie ups with pizza hut or dominoes to save on space and have cross selling 4) not a market leader so try to adopt market leaders way of handling supply chain and logistics 5) more outlets in busy markets 6) try to target children and young population try to reach through mails, flyers etc THE IMPORTANCE OF CHANNELS OF DISTRIBUTION There are hundreds of thousands of marketing intermediaries whose job it is to help move goods from the raw-material state to producers and then on to consumers. MARKETING INTERMEDIARIES are organization that assist in moving goods and services from producer to industrial and consumer users. They are organizations (formerly called "middlemen") in the middle of a series of organizations that join together to help distribute goods. A CHANNEL OF DISTRIBUTION is the whole series of marketing intermediaries who join together to transport and store goods in their path from producers to consumers. A WHOLESALER is a marketing intermediary that sells to other organizations. A RETAILER is an organization that sells to ultimate consumers. CHANNELS OF DISTRIBUTION enhance communication flows and the flow of money and title to goods. The latest trend is......

Words: 2363 - Pages: 10

Premium Essay

Case Jones Blair

...industrial buyer specifications are applied to original equipment during manufacturing (think automobiles, trucks….). It holds 35 percent of total industry dollar sales. - Special-purpose coatings: for special applications or environmental conditions. It holds 22 percent of total industry dollar sales. Jones Blair is specialised in architectural coatings. 2. How would you segment this local market Architectural coatings segmentation: By end-user: do-it-yourself painters versus professional painters By use: Interior paints versus exterior paints Geographic: DFW (eleven county Dallas-Fort Worth) & non-DFW 3. What is the attractiveness of your identified segments and what are their specific needs and wants? - Do-it-yourself painters: Account for 50 percent of architectural coatings dollar sales. They typically buy in Whse H.C. Home Center and membership clubs. Consumer buys around $74 per purchase. They choose first a retail outlet and then a brand. Less price-sensitive - Professional painters: Account for 25 percent of architectural coatings dollar sales. They typically buy in Specialty Stores and lumberyards. They seek out quality products (paint) and look for retailers who provides the best service. Yet they are very price-sensitive. - Interior paints:...

Words: 1294 - Pages: 6

Premium Essay

Kuch Bhu

... Tweeter, etc. is an audio/video company that faced pricing strategy problems in 1993 that made the history books for adverse pricing strategies. Sandy Bloomberg formed the company in 1972 and the company faired well in the 1970’s and 1980’s. It grew to 13 stores when they implemented the Automatic Price Protection pricing strategy. This strategy nearly drove the company into bankruptcy. The company still faces unremitting problems which this paper will address. This is our proposal as RU Consulting, L.L.C. First, we will examine how the company evolved. Second, an analysis of the company’s strengths, weaknesses, opportunities and their threats will be considered and an analysis of their corporate strategies will be given. Third, we have included our solutions and recommendations for this company. Last, we would like to give our recommendation to you as the stockholder on what you should do with the stock you are holding. Tweeter started out as a small retailer of high-end audio/video equipment right outside of Boston University. This store was a success and soon expanded into 13 stores through out New England. [1] It began to get a reputation for its excellent service and quality products and sales soared. However, in the late 1980’s, the bottom fell out of the electronic market and caused two things: price wars with local competition; and Tweeter then joined the Progressive Retailers......

Words: 2256 - Pages: 10

Premium Essay

No.1 in Retail

...Indian retail magnate Kishore Biyani about a youngman sitting with him in a Mumbai hotel meeting room inearly December. "I see that he is wearing Colour Plustrousers. I know his waist size ... I know everything about him. We are a company of observers, andeverybody is trained to observe customers," says Biyani, who is CEO of the Future Group and managingdirector of its flagship Pantaloon retail chain that last year had revenues of Rs. 2,018 crore ($450million) and expects to become a $1 billion company by mid 2007. Biyani often spends Sundays hanging about unobtrusively and watching shoppers at his company's 200clothing stores in 32 Indian cities. The home-grown retailer's obsession for observing the average Indianconsumer also at public places like temples and movie halls underscores what could be Wal-Mart'sbiggest challenge as it sets up shop in India in partnership with Bharti, a leading telecom servicesprovider. "India is a very diverse country -we have 6,000 castes and sub-castes in 28 states, and everycommunity has its own tastes; every state has its own nuances," says Biyani. "To manage the diversityand the heterogeneity will be one of the biggest challenges for anybody who comes to this market." Enigmatic India and its challenges in transportation, warehousing and distribution infrastructure haven'tdeterred the world's biggest organized retailers that have lobbied -unsuccessfully so far -- with theIndian government to permit foreign direct investment in the retail......

Words: 2609 - Pages: 11

Premium Essay

Tweeter Paper

... Tweeter, etc. is an audio/video company that faced pricing strategy problems in 1993 that made the history books for adverse pricing strategies. Sandy Bloomberg formed the company in 1972 and the company faired well in the 1970’s and 1980’s. It grew to 13 stores when they implemented the Automatic Price Protection pricing strategy. This strategy nearly drove the company into bankruptcy. The company still faces unremitting problems which this paper will address. This is our proposal as RU Consulting, L.L.C. First, we will examine how the company evolved. Second, an analysis of the company’s strengths, weaknesses, opportunities and their threats will be considered and an analysis of their corporate strategies will be given. Third, we have included our solutions and recommendations for this company. Last, we would like to give our recommendation to you as the stockholder on what you should do with the stock you are holding. Tweeter started out as a small retailer of high-end audio/video equipment right outside of Boston University. This store was a success and soon expanded into 13 stores through out New England. [1] It began to get a reputation for its excellent service and quality products and sales soared. However, in the late 1980’s, the bottom fell out of the electronic market and caused two things: price wars with local competition; and Tweeter then joined the Progressive Retailers......

Words: 2331 - Pages: 10

Premium Essay

Student

...grown rapidly and today it is the world's largest furniture retailer, known for its cost control, operational details and continuous product development, allowing it to lower its prices while continuing its global expansion. Since then, the IKEA Group has grown into an international retail brand with 131,000 co-workers in 41 countries generating annual sales of more than 24.7 billion EURO. IKEA carries a range of approximately 9,500 products, majority of which is flat-pack resulting in reduction in costs and packaging. This wide range is available in all IKEA stores and customers can order much of the range online through IKEA’s website. IKEA stores include restaurants and cafés serving typical Swedish food. They also have small food shops selling Swedish groceries. The biggest sales countries are Germany, USA, France, UK and Sweden. Competitive prices are one of the foundations of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is united with a wide range of well designed, useful products. IKEA’s products provide for every lifestyle and life stage of its customers, who come from all age groups and types of households. This is vital in times when the retail sector is depressed, as it increases IKEA’s potential market. I have selected The Home Depot for comparison with IKEA which are one of the largest companies in the furniture industry. 1.2 PROJECT OBJECTIVES AND RESEARCH QUESTIONS PROJECT OBJECTIVES: questions The......

Words: 5292 - Pages: 22

Premium Essay

Ethical Perpectives

...In 1950, Sam Walton opened his first store under the name of Walton's five and dime in Bentonville, Arkansas. While that store was successful, he felt as though it was time to move on to bigger and better things. That same year, he opened a second store in Rogers, Arkansas and rebranded the stores as what is known now as Walmart. Since then, they have become one of the most well known retailers in the world. In a seventeen year period, the chain had grown from one store to 24 across the state of Arkansas which reached over $10 million in sales. Currently, the chain operates stores in 27 different countries under 69 different names (Walmart, 2013). The founder, Sam Walton had the vision of selling large amounts of product at costs much lower than its competitors. This was done by keeping their profit margins low. Walton's vision was definitely a successful one, reportedly, the store sells over $42 million in merchandise per hour. With great success, there also comes great strife as well and the company has also had its share of controversy. The Walmart corporation has based their business model on profit. Their moral perspectives and ethical views are aligned with this ideology as well. The company has globalized and continue to expand based on their low operating costs which flow down to the prices of the products they provide. Walmart has faced much scrutiny but are able to withstand much criticism when it comes to their legal ethical practices. Issues......

Words: 1161 - Pages: 5

Premium Essay

Marketing Case

...1. Describe how this organisation positions their brand against their competitors. APPLE Company background: - Apple Inc. uses the Apple brand to compete across several highly competitive markets.  Apple's brand has evolved as it has expanded its range of products and services.  Originally starting in the late 1970s with desktop computers and then laptops in the 1990s, it took over 20 years before the company expanded into its first major new product area with the launch of the iPod in 2001, followed by I-Phone in 2007, I-Pad in 2010, and now Apple Pay and Apple Watch in 2014. * Business Strategy The Company is committed to bringing the best personal computing, portable digital music and mobile communication experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings. The Company's business strategy leverages its unique ability to design and develop its own operating system, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design. The Company believes continual investment in research and development is critical to the development and enhancement of innovative products and technologies. In addition to evolving its personal computers and related solutions, the Company continues to capitalize on the......

Words: 3629 - Pages: 15

Premium Essay

Case Strat Pol and Form

...single price point retail with over 3300 stores across the United States. It has faced several issues that have led to organizational and leadership problems. 1. What are the chief elements of the strategy that “Dollar Tree” is pursuing? The chief elements important in this article are all related to the fact that the company was moving towards expanding the business and creating a competitive advantage. As the article says, the business grows so much that by 2009, there were over 33000 retail stores and 12 distribution centers. The chief elements are as follow: - To enter new geographic markets. - To gain sales and market share with lower costs. - Adhering to policies and procedures and making changes when needed. 2. What are the elements of “Dollar Tree” ’s Business Model? There are 2 elements in the Business Model of Dollar Tree, which are Customer Proposition Value and Profit Formula. Customer Proposition value lays out how the company is going to satisfy customer needs at a price the customer will consider a good value. In the case of Dollar Tree’s company one dollar for all products they offer is both a good value for the price they pay, and satisfying. Profit Formula describes how the company is going to determine a cost structure that will provide profits. Dollar Tree company, in order to keep up with competition, has to purchase very aggressively when products of extreme value come their way, even if it means overloading stores. The costs of......

Words: 1551 - Pages: 7

Free Essay

Assignment 2

...Competition brings in Big Bucks Sharee Steed Professor Parren Shannon, JD BUS 508 July 22, 2013 Question # 1-Detemine how each corporate culture differs from the other. When starting a business you as the owner should always have a strategy that sets you apart from competing vendors. What makes your company differ from the others and what would you like consumers to know that set you apart. In today’s market competition is always a factor but it does not necessarily have to be a bad thing; there are advantages to having a competitor. Developing strategies for your competitor is key, “The underlying goal of strategy development is competitive differentiation,” (Kurtz, 2012, p. 230). The companies presented below demonstrate the perfect example of business competition. The home improvement industry has been experiencing rapid growth since the late 70’s. Due to the capital effect, consumers would spend high amounts of cash and credit on improving their most prized and expensive possession, their homes. As a result, the home improvement industry experienced quick development and progress. This is what led to the opening of two mega home improvement stores known as The Home Depot and Lowes Companies, INC. The Home Depot which was founded, “1978 in Atlanta, Georgia and has since become the world's largest home improvement retailer, operating more than 1,500 stores”, (Brumley, 2012). Although not as international as its competitor Home Depot, Lowes is a “$26 billion retailer......

Words: 1019 - Pages: 5

Premium Essay

Walmart Swot Analysis

...States and one of the biggest Fortune 500 companies, second only to Exxon. Wal-Mart has over 8 thousand stores in 15 countries operating under 55 different names. Strengths “Wal-Mart is the largest retailer in the world. The company was ranked first by Fortune 500 on the list of America’s largest corporations, as well as on the list of world’s largest corporations in 2011. By the end of FY2011, the company had more than $400 billion in revenue, over $25 billion in operating income, 8,970 stores, and over 984,949 square feet of space. The scale of its operations is unprecedented and there is no competitor of comparable size. The company has been expanding international operations. In FY2011, Wal-Mart’s international operations account for nearly one fourth of the company’s total revenue, half of its store count, and nearly 30% of its retail space.”, Datamonitor (2011). Wal-Mart US is an essential portion of consumers' budgets as it accounts for a substantial portion of the country’s total retail and grocery sales. The company is a leader in the US retail scenery and is emerging worldwide at a fast pace .Wal-Mart, as a frontrunner in the market, is able to reproduce its best practices repetitively on an unmatched scale both in the US and international. Wal-Mart's has satisfying terms on large scale relative to most suppliers’ on everything from the goods on its shelves to store leases and distribution agreements. These competitive advantages produce positive economic returns......

Words: 2381 - Pages: 10

Premium Essay

Quiktrip in Emerging Markets

...new jobs. This large growth in major cities along with an increase in jobs has created a huge demand for products the Chinese can now afford. Foreign companies have taken advantage of this growth and have moved into China to begin selling their products. Nike, Apple, IBM, Microsoft, and many others have increased their profits enormously since establishing themselves in China. The great demand in China has even attracting small businesses to explore the option of selling their product there. One company that would do well in China is QuikTrip. QuikTrip or QT is a Tulsa, Oklahoma based chain of convenience stores. Its locations are primarily found in the Midwestern and Southern states. QT grows annually and currently has 678 locations in the Continental United States. QT locations are larger than most other convenience stores. They offer up to 30 gas pumps and a large retail space inside. QT locations would thrive in large Chinese cities because they offer the customer a large assortment of beverages and food in short period of time. Also, the amount of gas pumps offered at QT locations would be able to accommodate the large number of new car owners in China....

Words: 4518 - Pages: 19

Premium Essay

Zara Case Study

...end of 2001, Zara operated 507 stores around the world, including Spain. Of Inditex’s total employees, over 80% of them are part of the retail sales force and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured its most fashion-sensitive products internally and its designers continuously tracked customer preferences and placed orders with internal and external suppliers based on this information. Due to its unique needs, Zara chose to internally develop its business systems. Zara is now able to originate a design and have finished goods in stores within weeks for entirely......

Words: 2650 - Pages: 11