Understanding Retail - identify the competitive factors in the retail environment in a selected organisation

1610 WordsMay 24, 20147 Pages
Understanding Retail P4: Identify the competitive factors in the retail environment a selected organisation faces. Organisations are effected by many different competitive factors that they are forced to face. Organisations will try to strike competitive advantages by marketing using the fours P’s; product, price, place and promotion. The four P’s will influence all organisations to analyse the structure of their marketing as it is vital that they override the competitive factors between all businesses surrounding them. By using strategy (what they are going to do) and tactics (how they are going to do it) the organisation will gain an advantage as it will give them a structured plan. An organisation will be influenced to confront the…show more content…
These may include features like age distribution, population growth rate, employment/income statistics, education/career trends, religious beliefs/social stigmas, and overall general attitude (conservative or liberal). Technological environment refers to the technical aspects of the business environment and may include the level of automation available in the current times, technical facilities and infrastructure, rate of technological progress and research and development activities. These factors may assume decisive proportions and may impact the cost, quality and scope of innovation for a product, service or commercial utility. The Five Forces Organisations should always consider The Five Forces when competing whether they are in a Marco or Micro environment. The Five Forces are very useful for businesses as they help them understand the strengths of both their current position and their competitive position they are considering to move into. The forces are used to help a business understand the most powerful area in a business situation. This helps them gain an advantage and work on areas they are weaker in. Here are the five forces that organisations will need to consider. The Power Of The Customer The Power Of The Supplier Barriers To Entry That Market Treat Of Substitute Products Internal Rivalry The power of the customer effectiveness will depend on the amount of customers supporting the problem. It would become a high leveled

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