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…
limited and other options don’t exist
Multidimensional thinking: mangers have ability to address many problems at once in relationship to one another
“Map” multiple problems into a network that can be managed over time as events, priorities, demands change
Make decisions and take actions in the short run that benefit the long run
Strategic opportunism: ability to remain focused on long term objectives while being flexible enough to resolve short term problems and opportunities in a timely manner
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…
partnering with leading manufactures—in the motor industry or other sectors where we operate—is a vital and integral part of our business strategy. So, we have partnership with the BMW. The BMW Group recommends Castrol in their service literature, driver handbooks and marketing communications, as well as on the vehicles' engine blocks. We are delighted to have been chosen as the recommended oil for all BMW Group vehicles.
• In the world wide, Castrol works with leading manufacturers worldwide…
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
| 2007 | 2008 | 2009 | 2010 |
| | | | |