ANSWERS TO DISCUSSION QUESTIONS AND PROBLEMS
What is your favorite retailer? Why do you like this retailer? What would a competitive retailer have to do to get your patronage?
Students may choose an example from a wide variety of retailers. Answers will likely range from national chains including but not limited to K-Mart, The Gap, Bloomingdale's, McDonald's, The Sports Authority, Starbucks, JC Penney, to online retailers like Amazon.com and eBay to favorite local shops and hangouts.
Whatever selection is made, ask students to concentrate on the specific aspects of retail strategy, such as: (1) intended target market of the retailer; (2) nature of merchandise and services and the specific consumer needs sought to be …show more content…
In general, students would see both the arguments for and against the large store. However, one could also add that smaller firms providing superior service or other forms of consumer value apart from price would prevail despite the presence of a large store competing on the basis of price. Examples include electronics stores that provide greater consumer information and expertise, or customized services such as portrait framing, etc. Given that modern retailing has seen several different types of retailers emerge and compete successfully, it is debatable if the large store would ever actually become a monopoly. As long as some consumers continue to seek a wide variety of retail offerings beyond price, other retailers or retail formats will emerge to challenge the growing monopolization by the larger store.
Choose a U.S.-based retailer that wants to open a new store outside the United States for the first time. Which country should it pursue? Why?
Students may point out global retail expansions they are aware of here. This could include Wal-Mart or Home Depot’s expansions to other countries. They should consider differences in retailing practices and distribution channels in various countries in selecting the most appropriate match for their retail store of choice, such as supply chains, availability of land and restrictions to be considered for new stores, as well as consumer buying and shopping habits.
Think of your top five favorite retailers. Are