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Unit 18

In: Business and Management

Submitted By tobyjh21
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P3:
Customer service is important because it allows the business to stay connected with its customers and to receive valuable feedback which could prove beneficial to the business in regards to any improvements needed to be made to their products and services. It is also important to carry out good customer since satisfied customers will make repeat purchases and recommend the product to friends, leading to additional word of mouth sales. Customer satisfaction is also an important factor for the bottom line. Achieving strong profitability and market share requires loyal customers who stay with the company and make positive recommendations to others. Loyal customers will only make business with a specific organization and will go out of their way or pay a fee to stay with the company.

P4:
The first major competitive factor facing the big retail giants are their competitors. For example Tesco’s. They are constantly battling Sainsbury and Morrison’s for the market share. Alongside this, there are the bargain grocery stores such as Lidl and Aldi. In these times of financial difficulty, financial struggles are taking more and more of the market. Another factor is buying power. The big retailers have to buy vast amounts at extremely low prices in order to offer cheaper goods to customers while still making a profit. While they have extensive buying power they have to have somewhere to store it all, distribute it from and ultimately sell it from. These properties cost money to operate and everything they do is taxed as well. Also considering the huge distribution network they have and the ever rising cost of the taxation on transport, then this leads the amounts to further drain on profit. Tesco are actually the masters of the competitive war in the grocery industry as they have successfully diversified in many other areas which makes them more of a one-stop shop…...

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