7 things to keep in mind before starting Retail Store :
The final element in a retail strategy is the retailer’s approach to building a sustainable competitive advantage. Any business activity that a retailer engages in can be the basis for a competitive advantage, but some advantages are sustainable over a long period of time, whereas others can be duplicated by competitors almost immediately.
For example, it would be hard for Seattle’s Best Coffee to establish a long-term advantage over Starbucks by simply offering the same coffee specialties at lower prices. If Seattle’s Best’s lower prices were successful in attracting customers, Starbucks would know what Seattle’s Best had done and quickly match the price reduction. Similarly, it’s hard for retailers to develop a long-term advantage by offering broader or deeper merchandise assortments.
Things to keep in mind before starting Retail Store
If broader and deeper assortments attract a lot of customers, competitors will simply go out and buy the same merchandise for their stores. Establishing a competitive advantage means that the retailer, in effect, builds a wall around its position in a retail market. When the wall is high, it will be hard for competitors outside the wall (i.e., retailers operating in other markets or entrepreneurs) to enter the market and compete for the retailer’s target customers. Over time, all advantages erode due to competitive forces, but by building high, thick walls, retailers can sustain their advantage, minimize competitive pressures, and boost profits for a longer time. Thus, establishing a sustainable competitive advantage is the key to positive long-term financial performance.
7 things to keep in mind before starting Retail Store
Seven important opportunities for retailers to develop sustainable competitive advantages are as follows:
(1) Customer loyalty,
(3) Human resource management,
(4) Distribution and information systems,
(5) Unique merchandise,
(6) Vendor relations, and
(7) Customer service. Exhibit 5–2 indicates which aspects of these sources of competitive advantage are more and less sustainable.
Let’s look at each of these approaches ( Click on any of the above topic ).