Essay on CPA117 CASE 1 Online Shopping

Shopping can and should be about more than just price or convenience. Moreover, for high street and main street retailer, concentrating only on price means losing the opportunity to build genuine brand loyalty or give shoppers a reason to enjoy their visit.

When examining competitive advantage, it is also important to consider the market and take into account the existing competition against larger firms.

To keep a local suburban regional shopping mall from reaching its decline, there are a few things that must be done to keep your mall relevant in today’s society. One must spend time and money during the maturity phase to keep with today’s trends. Getting more or newer department or anchor stores may help to draw in business. Then fill the other empty spaces with specialty stores, offering products that consumers can’t get anywhere else. Another option for managers is to find a niche in the community that will draw consumers in.

First, there are good numbers in the higher income categories in Australia. Second, there are an increasing high income earners and middle class which present a great market opportunity. Third, the Australia’s brand conscious society is well suited to the department store concept. Also, advanced computer-based technology and stable political environment contribute to a favourable business climate. The only drawback is economic uncertainty which hinders firms future strategic direction.

Larger stores also offer people the convenience of additional services along with their shopping, for example post office, pharmacy and opticians. By addressing consumer’s expectations and using their buyer power they can offer a choice of products to reflect consumer’s diverse budgetary, dietary, ethical and environmental requirements. Furthermore their global buyer power enables consumers to benefit from choosing exotic produce all year round. With 30,000,000 customers (Bevan cited in Allen, 2009) choosing to use the big four supermarkets on a weekly basis it would suggest that they provide a format that consumers want.

The industry does not possess major threat from new entrants due to strong barriers to entry and strong competition for retail space. There is also a strong rivalry between competitors as limited space is being contested by major players alongside

The stores would cater to the need of locals and tourist. To not cannibalize existing

In the 1950s and 1960s shops selling high-order goods, like furniture and jewellery, were in the town and city centres, which attracted customers from a wide catchment area. Shops selling low-order goods, like food, were located in the local neighbourhoods. However, this traditional shopping pattern began to change in the 1970s, when shops like supermarkets and DIY stores began to move to the outskirts of towns by decentralisation. Although it is obvious that the decentralisation of retailing and other services has had a major impact on urban areas, the impacts have been negative, positive or neutral.

The tenant structure of the shopping center is an important factor in ensuring rent is adequate to make the project viable. The fact that Philipp conceded the hypermarket could have a negative effect on the overriding success of the project. ECE strategy typically relied on these large self-service retail stores. Hypermarkets are very desirable to customers since the warehouse structure enable the stores to offer a wide variety of products (i.e. fresh food, beverages, home supplies, electronics, clothing, car accessories, garden furniture etc.) at discounted prices. This lack of a hypermarket must be offset by assurance and

Retail stores, are one of the biggest and largest businesses around the world. They produce thousands of hundreds in revenues and they are some of the biggest employers industries. WALL-MART, IKEA, TESCO, ARGOS, MACYS, WALLGREENS and OFICCE DEPOT are some of the well-known retail stores that supply us every day with different kind of goods and services. For a better understanding, one of the main definitions of retail is: “...store commonly a shop or stall for the retail sale of commodities, but also a place where wholesale supplies are kept, exhibited, or sold…” What this means

The bargaining power of suppliers is medium. Since corporates conditions vary, whether the power of suppliers is strong should be determined accordingly. But to survive in the online retailing industry, keeping a close relationship with the suppliers is imperative. Many of the multi-national companies in the industry is depending on limited numbers of suppliers that are concentrated in production, differentiated in products, and not heavily relied on a single industry, which give them great bargaining power and can better facilitate the corporations’ success. Small companies may not have established such strong alliance with its vendors.

Today’s customers are more aware and empowered, and have more bargaining power due to the exponential increase in competition – direct, indirect or substitute. In retailing, they want hassle-free shopping, have less time at their disposal to locate the shop and the merchandise and are reluctant to keep waiting. The modern format retail stores are doing their best to anticipate the customer’s demands and are going all out to redesign their store interiors, offer more choices in varieties and assortments, and are giving as many services as feasible.

The problem, noted in this study, is that the exact reasons behind the sudden expansion of online shopping are unknown.

It’s also time consuming for building establishment takes months or even year to finish. They need also to identify the best place for their retail stores.

Retailing has been an important industry in any country. History would indicate that its form has changed with time as competition was no more a local phenomenon. Retailers started moving from being “neighbourhood stores” to expand their horizons nationally as well as internationally. Technology brought revolution in the retail industry with the advent of internet. Online retailers today have become a common part of everyone’s life. Mobile commerce too has started growing with the innovation of “App Stores” brought by Google and Apple. In this face of retailing, competitors have pushed themselves to gain more market share by trying