Case Study Questions On Strategic Manufacturing Management

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Assignment 1

Jacky Ming Jie Chen
Q1. Who are the main customer groups (or potential customer groups) within the industry? In what ways might they exercise their influence? How would you describe their bargaining power?
As supermarkets and the additional ownerships of Woolworths do not exercise strategy on a single or niche market but based on general customers consisting of individuals satisfying their needs, Woolworth’s main customer groups may be distributed in two different groups. The wealthier group that consists of a higher quality of living due to their higher annual income and a poverty or less-wealthier level group due to their low income. Both groups could be separated by a median salary split based on the latest available data from statistics. Possible influences of income level may be demographical and geographical in which the combined will determine which group customers belong to. There are different ways in which the customer groups may exercise their influence, the difference is mainly based on which group customers belong to.
The higher income group may exercise their influence by manners that are logical in terms of their wealth. For example, a wealthier customer may purchase the most expensive products which are advertised or marketed as the best in comparison to its competitors. Wealthier customers may also prefer to shop in bulks as the large purchases may not influence their budget

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