Department Store Industry

6338 Words26 Pages
Department Stores: Big Lots and The Retail Industry Michael Martinez Business Department Stores: Big Lots and The Retail Industry I. Problem Identification This paper seeks some of the major developments in the strategies of Big Lots Inc. in order to improve their market share. The main problem that this paper would like to investigate is the kinds of marketing strategies that the company employs in order to achieve greater market share. This paper would also assess the kind of competition and market structure that exists in the retail industry and how this is addressed through the strategies of the company. In addition to this, this would also try to probe on some of the financial strategies that the company used in order to…show more content…
The capacity to maintain stability in the industry is now found through servicing a specific niche market. The industry is now composed of those catering to the high-income and luxury products such as Neiman Marcus and on the other hand is Wal-Mart, Big Lots, and Target catering mostly to discounters (Tsiantar, 2006). The industry is therefore highly competitive right now. With fewer people making their way to department stores, the industry is filled with players all struggling to maintain market share through innovative strategies. The retail industry however is unusually hard to penetrate. Despite the high level of competition among the players in the industry, new players are finding it hard to stay in the industry because of the size of the players. One of the strategies of retailers right now is expansion in almost all cities across all states. This would enable them to capture as much market as they can. The industry players ' size is one of the important barriers to entry that should be considered. With the size of the main competitors and the increase in the number of their stores, new players are finding it hard to enter the industry. The industry is also suffering from the problems of substitutability of products that they are offering. Each department store is offering different lines of products that are in direct competition with other products. This is therefore creating an industry that is
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