The factors that are driving changes in the retail chain industry are increasing globalization, emerging new Internet capabilities and applications, product and marketing innovation, reductions in uncertainty and business risk, and changing societal concerns, attitudes, and lifestyles. First, increasing globalization drives change in the retail chain industry by way of finding new markets to compete in such as Costco’s expansion plan into France, Spain, and several locations in Asia. Next, emerging new Internet capabilities and applications drives change in the retail chain industry by way of seeking new approaches from the old brick-and-mortar way of having contact with consumers to now having brick-and-click approaches as those like Costco sell to the public by way of physical store locations (brick) and through the World Wide Web (click). Along with the previous driving changes, product and marketing innovation seems to be another driving change in the retail chain industry as can be seen in how companies find new ways to provide products to consumers such as how Wal-Mart provides customers access to products it sales online to be shipped site-to-home where a customer must pay for shipping or site-to-store where the customer does not pay shipping but must obtain the purchased items at an actual Wal-Mart store location thus increasing store traffic for possible more sales. As far as marketing innovation retail chains must find multiple avenues to get their name and products known to consumers by advertising online or mobile devices when a consumer uses a free electronic service or game instead of just television and print media. Next, reductions in uncertainty and business risk drive change in the retail chain industry in the way of deciding to expand or reduce its locations such as how Wal-Mart expanded into China and later stopped functioning all together into China, to invest in other opportunities such as Target has recently begun to get into the grocery retail business in addition to its department store approach, or reduce wages or jobs as Costco has decided against even in the turmoil of the Recession of 2008-09. Lastly, changing societal concerns, attitudes, and lifestyles drive changes in the retail industry in how consumers likes and dislikes must be at the forefront in what products and services to offer or not to offer in order to stay competitive and receive a profit.
Costco’s closest competitors are Sam’s Wholesale, Wal-Mart, Target, Kohl’s and K-Mart. Each of these companies is a big-box chain that provides diversified products for price conscious consumers in one location. Sam’s
CASE: A-186A DATE: 06/19/03
CosTco WHOLESALE CORPORATION FINANCIAL STATEMENT ANALYSIS (A)
Margarita Torres first purchased shares in Costco Wholesale Corporation in 1997 as part of her personal investment portfolio. Between 1997 and 2002, she added slightly to her holdings from time to time when the company sold stock for what she felt was a reasonable valuation, and up to that time she did not sell any of her shares. Having watched Costco grow from 265 warehouses to 365 worldwide…
problem in Marketing and another problem with Operations and one can’t be more important than the other.
Analyze the Macro Environment/ External Environment
* Don’t forget to define your industry
* What are the industry drivers of change?
* What are the key success factors?
* Which analysis is important? (Don’t do all of these analyses! Pick which one(s) are important and which ones you have enough information to do!)
* 5 Forces Model of Competition…
1. What are some key success factors in diamond retailing?
How do Blue Nile, Zales, and Tiffany compare on those dimensions?
Key drivers of customer purchases in diamond retailing include quality and range of products offered, reputation, professional advice offered, and customer perception and emotional bonds, including a positive buying experience and customer service. Success is also dependent upon obtaining economies of scale through such avenues as preferential access to resources, an…
Management Study Guide: Test 2
Chapter 7: Information and Decision Making
3 “must have” competencies:
1. Technological competency: ability to understand new technologies and to use them to their best advantage
2. Information competency: ability to locate, gather, organize, and display information
3. Analytical competency: ability to evaluate and analyze information to make actual decisions and solve real problems
5 criteria for useful information:
1. Timely: the information is available when needed…
T-mall has played an important role to deliver products to their domestic and global customers and provide more quality brand goods since its establishment. A lot of famous international brands have opened up e-shops on T-mall, such as Burberry, ASOS, Costco, Best Buy, and Ralph Lauren and so on. Now, T-mall has become the largest B2C online shopping platform in China, occupying 57% market share.
Since establishment of new T-mall logo, the advanced China B2C shopping platform has a…
Stockholder, 2011). Publix stands as one of the largest regional grocery chains in the United States. Its main competitors are national grocery chain IGA, Kroger, and Whole Foods; consolidated retail and warehouse chains, including Wal-Mart, Target, Kmart, Costco, Sam’s Club and BJ’s Wholesale Club; and several regional grocery chains, including Fresh Market and Winn Dixie.
Publix Super Markets Inc. Financial Perspective
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