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Process
Definition
It includes:
Defining the overall mission or purpose of the company
Deciding on objectives that management wants to
achieve
Developing a plan to achieve these objectives
The strategies will be implemented through pricing,
promotion, and physical facility plans in order to
accomplish the overall mission of the firm.
The statement should embody the following elements The basic product or the service to be offered, the primary
market or customer group to be served and the technology
to be used in production or delivery.
The fundamental concern for the survival through sustained
growth and profitability
The public image to be sought
The managerial philosophy in terms of basic philosophy,
values, aspirations and philosophical priorities
The self concept that people affiliated should have of the
firm, which may include management style and work ethics.
Elements in the situation analysis Market factors- size, growth, seasonality, business cycles
Competitive factors- barriers of entry, competitive rivalry
and bargaining power of vendors
Environment factors- economic, social, technological and
regulatory
Analysis of strengths and weakness- it indicates how well
the business can seize opportunities and avoid harm from
threats in the environment. Some issues to be considered in
performing a strength and weakness analysis
Management capabilities
Financial resources
Locations
Operations
Merchandise
Store management
Customer loyalty
Growth strategies
1. Market penetration
It targets existing market segments with existing
formats, seek a differential advantage over competition
by a strong market presence that borders on saturation.
Market penetration is often used by retailers because it
builds on the firm's existing strengths, which include
knowledge of current customers and their preferences
and the firm's familiarity with the merchandising lines.
Such a strategy is designed to increase:
(1) the number of customers
(2) the quantity purchased by customers
(3) purchase frequency.
The lowest price lines and the lowest prices within the market
area.
2.
3.