Assignment 2: Market Model Patterns of Change

1090 WordsFeb 4, 20135 Pages
| Assignment 2: Market Model Patterns of Change | | | | | | | | The industry I chose to research is the superstore industry. An industry, which at one time was dominated by KMart, has gone through enormous change over the past five to ten years. KMart had very little competition when superstores were not really in existence. WalMart became their biggest competitor. New technology along with multiple competitors, have changed the way consumers make purchase. Once considered a monopoly by many, KMart fought the many pressures affecting stand-alone stores today. The company had few stores, which resulted in high costs. Once the industry started evolving with new technologies, these stores became sunk…show more content…
As more and more people continue shopping at WalMart they will be forced to have to hire more and more and they are faced with a high turnover rate as well. Having to train employees can become costly. Another source of rising costs within the industry will become the fight against shoplifting. More than $4.7 billion was lost to shoplifting and employee theft in just 25 U.S. retail companies in 2002, with only 2.43 percent of those losses resulting in a recovery, according to the Fifteenth (15th) Annual Retail Theft Survey conducted by Jack L. Hayes Intl., a loss prevention and inventory shrinkage control consulting firm (Jonesboro Forum, n.d.). As manager, I would look at my company’s share of streaming data and compare it to my competitors. In this business, I believe that volume speaks louder than anything else. My share of the marketplace would decide how I went about opening or closing new stores. If I were a company who had the majority share, my negotiation tactics would be on point, as I know the customers would want big savings. On the other hand, if I were a smaller company, I would still negotiate hard, but may want to look a little harder at the content side than the company that has the majority share. While it would be important with any of the companies in this industry, I believe that the type of content you buy can be especially important for companies with a smaller share. For instance,

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