Contemporary Issues Affecting the Electrical Goods Sector of the Retail Industry

Big Lots, INC. can be directly impacted by the health of the economy. For example, declines in general economic conditions, disposable income levels, and other conditions could lead to reduced consumer demand for the company’s merchandise, thus affecting their revenues and gross margin. Other Current and future economic conditions that can affect the industry are consumer financing, unemployment levels, interest rates, recession, and inflation. Specifically, when disposable income is negatively impacted, the Soft Home, Hard Home, Home Décor & Furniture, and Seasonal

Real household disposable income has reflected a downward trend from 2009 to 2013 and household saving did not decrease during 2012, which reduced the level of cash flow meaning store sales will be affected by a decreased level of income remaining for shopping after spending on daily necessities. In addition to this, switching costs remain low for customer changing their preferences because of the diversity of options like Myer, K-Mart or the brand retailer like ZARA and Gucci.

Dhruv Dar, Sanjay Kumar and Vijay Aggarwal wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of

The internet has affected just about every industry in the world and has also had a huge impact on the automobile industry. The buyers referred to the internet before making their purchases and went to the auto websites before going

Where does this retailer 's merchandise fit on the category life cycle? (refer to Chapter. 8 & Chapter. 12)

The high cost of living affects Lidl as it is very hard for people to live with the recession and the credit crunch. Customers disposable income is very low which is going to mean that they will only buy goods which they feel are essential such as bread and milk etc. This can cause Asda to have reduced sales and less impulse buys as customers are buying only what they need not what they want.’ ‘http://www.powerfulwords.co.uk/sample-assignments/accounting/business-and-academic-leaders.php.’’

A host of internal and external factors plays an important role in the organizational structure and process. The opportunities for Best Buy are economies of scale, targeting new market segmentation and global expansion. Strong competition, growth in online sales and the new developments in government regulation are the threat for the Best Buy. Competitions in the electronics industry are based on several factors such as price, quality, durability, product features, customer preferences and warranties. With the advancement in the ecommerce and internet, Best Buy acquired many internet

Increasing competition from Scrambled merchandising from Canadian tire & dollar store chains. Increasing competition is putting a pressure on profit margins as well.

Product: The stores’ products are divided into 5 categories: 1) grocery (including diary); 2) fresh meat/poultry/seafood; 3) produce; 4) seasonal and general merchandise; and 5) bakery and deli.

I believe the internet has created a more competitive market. This competitive market has many buyers and sellers. There are many standardized to individualized products in this market. There are really no real barriers to market entry or exit. The Internet has become a platform that has completely changed the way a company can do business. The internet has allowed small business to become multinational operators because of the market chosen. Price and product quality decision can be made using this market because research

An increase in Internet maturity, correlates with an increase in real per capita GDP on average of $500. Looking back to the Industrial Revolution, it’s growth took 50 years to achieve these same results. This demonstrates both the magnitude and impact the internet delivers to all levels of society. In the French Economy, the internet had reported to have destroyed 500,000 jobs over the past 15 years, but has also over those same amounts of years has created 1.2 million new ones. For every job the internet has taken away, it’s created twice the amount. It’s safe to the internet has been able to increase the worlds GDP bringing great growth to the

The internet, a new form of communication between computers developed by the military in the 1980s, would have an unprecedented effect on business. During the 90s, business old and new began to make their appearance on the internet. Although, at first, it was a new and dangerous medium, causing many businesses to fail in the Dotcom bubble, the internet caused business and economy to flourish for years to come. US investment in the internet and computers helped it gain much economic power in the 90s and 2000s, leaving other nations who neglected their potential in the

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

(4) The fact that customers are mainly men limits the available market, too, to sellers, causing sellers to keep prices high. However, the Internet has reduced barriers to entry into the industry. The overhead of maintaining a shop, even of hiring models to pose for pictures now that computer graphics can substitute, has reduced costs. The Internet has also increased demand as it has taken away much of the embarrassment of ‘real life’ purchasing. Thus, technological change can fundamentally change both the supply and demand sides of the equation of any industry.

Economic factors the main impact every product and service is inflation. When there is inflation it has a ripple effect on all products and services. As a result companies incur an increase in their cost of production, and that leads to an increase in retail and wholesale prices. This can decrease the consumer buying