...FOR THE RETAIL INDUSTRY IN SOUTH AFRICA Contents Page Executive Summary 2 1. Introduction 3 2. Retail industry in South Africa 5 3. Macro and Micro environment analysis 6 3.1 Macro environment of Retail market in South Africa 6 3.1.1. Political Environment 6 3.1.2. Economic environment 8 3.1.3 Technological Environment 10 3.2 Micro environments analysis 11 3.2.1. Suppliers’ Environment 11 3.2.2 Consumers’ Environment 12 3.2.3 Competitors’ environment 15 4. Findings summarization 17 5. Conclusion 18 References 19 Executive Summary The purpose of the assignment is to develop the written and oral communication skills of marketing for business leadership students. The objective of the assignment is to aware students about the application of market analysis for the retail industry in South Africa. The retail industry effectiveness is dependent on the macro and micro environment analysis of the sector. The students of this group has done the analysis using different resources from South Africa statistics, Standard Bank, and other private consultancy reports that are listed in the reference list. According to the findings, South Africa’s economy is continuing in growth since 1994, which is after the democratic election that resulted from the failure of apartheid. During the regime of Nelson Mandela different improvement in poletical, technological and environmental...
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...unique keyboards, and business people used it for the internet, texts, address books, schedule management, and so on. Blackberry’s phones were stylish and revolutionary with high technologies and lots of tools in that period. However, there are few opportunities to see those who are using it recently. People shifted to iPhones or smartphones of other companies, such as, Samsung, LG, and Nokia. Then, why is not blackberry popular anymore? Are there any exact reasons or factors for that it failed in the market? These questions are important and necessary for the company to make the company stable and set it back to the market again. The reason why the sales of Blackberry declined greatly must not be only because of the change of the trends. It is essential to analyze the factors of sales decrease to survive in the competitive market. One of the important factors is adaption to the external environment which is necessary for all of the industries. Apple is one of the best examples that could adapt to the market pretty well. Steve Jobs placed emphasis on small devices, such as iPods instead of large products. Moreover, he recognized that iPods alone would not be enough to survive in the market because he expected that modern phones would be able to have a system to play as much music as iPods at the same time of one makes a phone call. Therefore, Apple developed the smartphones as one of the main products. If Apple did not shift to produce iPhones instead of iPods, it...
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...Paper Technology has drastically changed the retail industry. Today consumers are armed with tons of information that could be analyzed to help make buying decisions. Thus one could say that technology has provided the consumers with an avenue through which they can communicate feedbacks on product quality and brand to the retailers and brand. As a result of technological innovations, consumers can compare prices, research products, check inventory, provide product reviews, and even exchange or return recently purchased products from the comfort of their homes. This paper will present a case study outline of technological innovations that have helped shaped the retail industry with a focus on the Macy’s stores. Technologies affecting retail: Retail business as we know it today has been shaped by a mix of technologies. First and foremost amongst these technologies is the Internet. Others include Customer Relationship Management (CRM), Network technologies, social networks, mobile technologies, and e-commerce. Effect of technology on Macy’s The trend: Consumers are increasingly becoming very comfortable shopping online. According to Arvidson (2013), the US Census Bureau reported that about $165 billion worth of transactions took place over the internet in 2010. This represented a 15% increase over the previous year and it is a trend that is expected to continue on the upward trend. According to Thau (2013), Macy’s stores recorded...
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...Business Communication Trends Yaaver Siddiqui Business Communication/COM-285 November 20, 2009 Everett Hays Business Communication Trends From the moment of birth, people are constantly trying to communicate with the world. With physical, emotional and cerebral development, our modes of communication change. Without the capacity to communicate effectively, society would not have advanced to its current stage. Nowhere is effective communication more vital than in the workplace. For any business to accomplish its stated goals, effective communication is essential. Companies use different modes of communication to convey their message to the targeted party. Communication may be verbal or written and delivery methods of such communications have evolved drastically. The technological advancements of today allow companies to communicate with a large number of people within seconds. Business communication allows management to convey their ideas and directives to their employees. In the retail sales industry, communication has many levels. Store managers receive direction from the corporate offices, which is then relayed to the assistant managers and employees. The store staff uses these directives to formulate an effective message for the customers, to facilitate increased sales. Corporate communications may consist of upcoming sales, product recalls, new product launches, and changes in company policies, to name a few. Clear instructions are crucial to managing...
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...Case Study Cloud 9 (Chapter 3) Your task is to research the retail and wholesale footwear industries and report back to the audit team. Your report will form part of the overall understanding of Cloud 9’s structure and its environment. You should concentrate your research on providing findings from those areas that have a financial reporting impact and are considered probable given Cloud 9’s operations. In conducting your research, you should consider the following key market forces, as they relate to Cloud 9’s operations. * General and industry-specific economic trends and conditions * Competitive environment * Product information * Customer information * Supplier information * Technological advances and the effect of the internet * Laws and regulatory requirements Solution Students may have identified some of the following key market forces based on their research. Economic characteristics/Supplier information/Regulatory The Australian footwear market is expected to grow at an average of approx 2% each year to 2012: * Household consumption expenditure has decreased over the last few years with petrol and housing prices increasing. Expenditure is mostly going towards travel and leisure rather than clothing or footwear. * Tariff reductions have led to a decrease in prices for consumers * Lower pricing levels and improved quality of Chinese imports have resulted in large volume increases. Cloud 9 Pty has responded well to...
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...REI Marketing Environment WorksheetList the current characteristics of each environmental factor as they relate to REI. U.S. EconomyHow does the current U.S. economy affect REI retail operations? 1.The American jobless rate is currently at an all time low. The economy is enjoying an upsurge that is fueling the housing market and the stock market and resulting in the U.S public having more disposable income than in recent years. This turns into an up rise for most retail and recreational markets. 2. While the current economic outlook may be boosting the spending activity of most Americans, the demands of balancing work schedules and family life have resulted in a consumer that is extremely careful of how they spend their disposable income. They are demanding high quality, superb customer service and immediate attention. Those recreational retailers who can meet these demands will be the ones who will benefit most from the current economic climate. Global EconomyHow does the current global economy affect REI retail operations? 1. REI, like many U.S. firms are expanding their operations into overseas markets. As this is done, the economic climates of these markets benefit from the influx of cash resulting from the employment of their populations. Multinational corporations (MNCs) are moving operations to wherever they can find the least expensive labor pool that is able to do the work well. This action has the combined effect of increasing available markets for...
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...Products and services include; Blockbuster, Blockbuster Video, Blockbuster online, Blockbuster Night, Blockbuster GiftCard’s, Blockbuster Game Pass, Blockbuster Movie Pass, Blockbuster Rewards and in 2006, the Blockbuster Total Access Program. The strategy of this program was based on returning the disc through a prepaid envelope or exchange at a retail location. The retail stores offer rewards and special promotions for visiting retail stores. Blockbuster Movie Pass is tied to a Dish subscription; “the company can offer content to which it already has the rights to through program deals for its satellite TV business” (Fritz, 2011). The purpose of this case study is to analyze the current internal and external factors of the evolving home entertainment industry. As a result of the environmental analysis, several strategies and alternatives to meet these demands will be explored. II. Situation Analysis A. General environmental analysis A general environmental analysis studies the following six segments of a respective industry; technological changes, demographic changes, economic conditions, political/legal trends, sociocultural trends and...
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...Macro Business Environment of Tesco Group The Macro-Environment consists of factors that may influence an organization externally. This is usually outside of the control of corporations. Examples of factors that may influence a business are changes in interest rates, changes in cultural trends and tastes, more competitors in surrounding areas as well as greater regulations or changes to government laws. (Pagano, Margareta, 16 May 1987). A popular method used to analyze the macro-environment is through a PESTLE analysis which stands for political, environmental, sociological, technological, legal, and ethical issues. Factors That Will Have Significant Impact on Tesco Political Factors The political environment includes all government actions that affect the business in the retail trade. This effect may be through formal legislation, such as the law on the sale of goods, as well as through competition policies and planning systems. For example, the recent developments relating to food safety and sale of genetically modified foods also influence and restrict the activity in the retail sector. (Pagano, Margareta, 16 May 1987). The influence will be different for each type of retail businesses, and an enumeration of all possible political factors beyond the scope of this book. However, it is important to understand that many of the legal setting are introduced in order to protect consumers and are a long stage of preliminary discussions....
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...show that growing disposable income of a consumer and technological developments are responsible for the changing retail formats. This change might take a decade or more (United States) but it can occur rapidly as well (Thailand).This paper has helped in understanding the factors that affect the retail landscape, historical stages of changes in retail in the developed markets, changing trends of retail sector in Pakistan, change in consumer’s lifestyle and demographics. At last it overviews the future of Pakistan’s retailing sector. Retail trend can be learnt in terms of the formats ranging from the traditional ones to the modern ones. Consumer’s changing lifestyle, growth in disposable income, and developing technology...
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...Market Trends Paper ECO 365 University of Phoenix Name Date Instructor Introduction When one dreams of opening a successful business, they hope to create one that is profitable, yet fair in the market place in which they compete. Every businessperson wants his or her company to be the best and wants to create an empire that surpasses all expectations. Unfortunately, they eliminate all competitors seeking their own success. One such company is the mega-retailer, Wal-Mart. Market Structure The monopolistic structure of Wal-Mart will have a negative impact in the future. Wal-Mart is the nation’s largest civilian employer, but their aggressive overtaking of their competitors and their sales may hinder their retail business. According to the Food & Water Journal (2000), Wal-Mart is being considered a monopolistic beast. The German government has been watching Wal-Mart closely since the corporation came crashing into the German economy two years ago by buying up two of its larger supermarket chains. The German government launched an investigation and found that Wal-Mart knew supermarket chains were illegally selling below their wholesale costs, with the goal being, to bleed their opponents dry and then revel without competition from there on out. Although, Wal-Mart enjoys continued success, some governments are questioning their marketing tactics. Wal-Mart’s disregard of the benefits to the consumer seems to be marginal and temporary and the damage...
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...Today’s global marketplace renders an aggressively competitive environment that demands organizations to be strategically versatile and quick to foresee the forces and trends of change that impact many businesses. Strategic flexibility is crucial to the success of Kudler Fine Foods. Forces and trends will perpetually be an aspect that all organizations will have to adapt to as a means to optimize the organization’s success. Every organization’s level of proficiency and potential for achievement in the marketplace can be assessed in numerous ways. This paper will evaluate Kudler Fine Foods by conducting a SWOTT analysis, and creating a table summarizing the findings. This paper will also analyze the following pertinent forces and trends: economic, legal, regulatory, culture, structure, leadership, and technological. Lastly, how well Kudler adapts to change will be critiqued, the supply chain operations will be analyzed, issues and opportunities will be identified, a hypothesis will be generated, and circumstances surrounding each issue will be identified and classified. Understanding Kudler Fine Foods internal and external environments is critical to the success of the organization. Kudler Fine Foods is an upscale epicure gourmet food store that provides gourmet foods and services that appeal to a niche market; gourmet chefs and gourmet chefs in training. Kudler Fine Foods would like to expand and grow the organization. Before proceeding ahead, the organization must know and...
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...Strategic Management: Strategy is a long-term plan framed to gain a competitive advantage. Strategic management is a domain wherein strategies are transformed in to actions. It even comprises decisions made based on priorities, say, tasks to which time is devoted like resource allocation. These plans and decisions are aligned to goals of an organization. (Amason, A. 2010) Strategic management focuses on clients to know their expectations and serve them brilliantly. It involves action plans to reduce attrition and to retain the best talent. Its scope involves the functions and activities which make the organization innovative and pioneering. (Karami, A. 2007) Need for Strategic Management: Need for its strategic management arises to fulfill the priorities of an organization few of which include: o To accelerate its growth in this global business. o To augment the operational excellence of the organization. o To become globalized. It aims towards value creation to all shareholders at the same time even being centered towards society. (Amason, A. 2010) Executive Summary: Strategic Management involves formulation and implementation of strategies to improve the performance and to gain competitive advantage. It involves decisions and acts that managers undertake in order to attain the desired goals. Strategies are planned means to attain end results. Strategic management is long term in nature and gives a direction to the organization. Before...
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...REI Marketing Environment Worksheet List the current characteristics of each environmental factor as they relate to REI. REI is a specialty retailer whose product line focuses on equipment and materials for the outdoor recreational enthusiast. They carry nearly everything one needs to enjoy the outdoors comfortably and effectively. Shoppers will find that they can purchase everything from tents, sleeping bags and camping equipment to specialized clothing to mountain bikes, kayaks and climbing equipment. REI’s product line includes gear of the quality that serves both the weekend family camper and the serious climber or cyclist. REI’s pricing is reasonable and will accommodate various income levels. In addition to the product lines, REI has a travel service that arranges unique and challenging adventures in exotic places such as Austria, Kilimanjaro and Botswana, and even Antarctica. One can explore these regions by foot, bike, rail or boat. Their group focus ranges from families to women only to birding to volunteer vacations with the American Hiking Association in which one can spend their recreational time helping to build or maintain hiking trails in sometimes remote areas. REI’s company information includes an encouragement to “join our winning team” and states that they have been chosen as one of Fortune’s “100 Best Companies to Work For” in 2005. They speak of themselves as a consumer cooperative with more than 2.4 active members. In general, they portray a corporate...
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...2.0 Introduction With the rising number of retailers, it is becoming essential to have strategies that work not only in the retailer itself but also to help it survives from the competitors in the same market. The aim of this report is to find the best-suited strategies for Mulberry, which is struggling to stay and compete in the market. This report presents analyses used to evaluate the internal and external environment and positioning of the retailer in order to get the rationale behind the retailers’ selected strategies. Burberry Founded in 1856 by Thomas Burberry, Burberry is a British luxury fashion brand, which is known for its outerwear (“Company History”, n.d.). In 2014, it reached over £400 million revenue with 193 stores opened all over the world (Burberry Group Plc, 2014). Large leather goods are one of the products that boosting the business which represents more than 30% of total revenue followed by women and men trench coat and its latest product line which is Burberry Beauty with revenue reached £151 million as of march 2014 (see Appendix 1). The biggest contributor of sales revenue is Asia Pacific region with the least mainline stores compare to Americas and Europe, Middle East, India, and Africa (EMEIA) region (Euromonitor, 2014). Realised the need to go digital and capture the Millenials segments, Burberry go into seamless approach by launching Burberry Bespoke which allows customers to create their own design of clothing. Burberry Kisses the latest...
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...Retail Marketing and Customer Loyalty The battle to gaincustomers and more importantly, their loyally is intensifying as the majorretailers continue to position themselves as the main point of contact forshoppers. So, rather than being a Kellog's brand buyer, we are instead becominga nation of Tesco supporters or Asda fans. The competition between brands, own- label, and discount supermarkets continue to coverage on the market. Giventhis contentious environment, retailers are now vying for the consumers'attention and more importantly for consumers' loyalty. Using theorycovered in the 'Scheme of Work', you are required to analyse the issuessurrounding the steady rise in the attention paid to customer loyalty and howretailers may need to change in order to remain competitive. As a guideline,your assignment should cover the following issues: a) Importance ofcontemporary trends in retailing b) Retailingbuying behaviour c) Productmerchandising and selling environment d) Retailpromotion and branding Introduction Growing interest in thestudy of retailing has been reflected in the growth of the retail industryitself globally. Potter (1982) indeed described the academic study of retailingas 'the Cinderella of the Social Sciences'. Others such as Gilbert (1999) viewretail or retailing as any business that directs its marketing efforts towardssatisfying the final consumer based on the organisation of the selling of goodsand services. Bearing in mind this definition...
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