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pressures Investments in organisational capabilities Creation of sustainable competitive advantage

2. 3.

Environmental Theory Cyclical Theory Conflictual Theory

1. 2.

4. 5.

Change in retail is attributed to the change in the environment in which the retailer operate. The various influences of the external environment are: Technological Economical Demographic Legal & Political Socio- Cultural


change follows a pattern and phases can have definite identifiable attributes associated with them.

Vulnerability Phase

Mature RetailerTop heavy Conservative Declining ROI

Innovative RetailerLow status and Price Minimum service Poor facilities Limited product offering

Entry Phase

Traditional RetailerElaborate facilities Higher rent More locations Higher prices Extended product offerings

Trading Up Phase


enter a market as general retailer, with experience they focus down on particular product sectors. Over time they begin to diversify their offering in order to grow but again will revert to specialisation.

2. 3. 4.

Innovation -10 yrs (African markets) Accelerated Growth -15-25 yrs (Indian Markets) Maturity- 5-10 yrs (South Asian markets) Stagnation 5-10 yrs (Developed markets)

The developments in retailing are as follows1. Thesis- Individual retailers as corner shops all across the country 2. Antithesis- A position opposed to the thesis develops over a period of time 3. Synthesis- A blending of the thesis and antithesis