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Shopping online vs in store shopping
Shopping online vs in store shopping
Shopping online vs in store shopping
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At present, the large cross-category physical retailers occupy a large percentage of market. For example, Walmart and Target who have more awareness of brand and more convenient network of the retailer stores. In the beginning, Bed Bath & Beyond does not provide an online shopping service to customers. Because the online shopping can help someone who is lazy to buy things in the physical stores and does not own a car to the stores shop. Under the pressure of Walmart, Target and etc., Bed Bath & Beyond started to open online shopping website. However, many pure online retailers are also a big threat of Bed Bath & Beyond especially Amazon.com which will have better price and no tax. Because Amazon has the lower cost of their products, they have …show more content…
In a Walmart, there are always a McDonald, financial services and pharmacies.
Industry Analysis
Competitive rivalry.
BBB have a leading position in Sales in its own field. BBB have the complete and advanced customer services like free return and they even provide no receipt return which is also a competitive way to remain their customer. But Bed Bath & Beyond has a low switch costs. Customers will have no costs and ricks to to change their favorite store to buy things for their home.
Threats of new entrants 小
The threats of entrants is small, because Bed Bath & Beyond and any other retailer stores who sell products covering bedroom, dining room and kitchen have large scale and over hundreds physical stores. The new entrants will need high financial barrier before they enter this market.
Supplier power.小
BBB has over 5600 suppliers. At the same time, they have no longer term contract, so they can change their popular products immediately and easily. But their largest supplier is only responsible for the 6.67% of the total revenue per year. Otherwise, the short-term contract and small supplier cause a unstable supplier
In the early 2000’s Lowe’s was rapidly intensifying its presence nationwide. The company carried a varied assortment of home improvement products and catered to the needs of retail as well as commercial business customers. Lowe’s expanded their reach by acquiring a 41-store chain, Eagle Hardware and Garden, and engaging in a strategic alliance with HGTV to obtain a more profound existence in their market (Rouse, 2005). By 2004, Lowe’s operated almost 1,000 stores with plans to continue expansion across the nation (Rouse, 2005). The company has a core competency in helping customers meet their home improvement needs at a low price. In order to use this core competency to gain a competitive advantage, the company has focused on key functional strategies. To continue their success, Lowe’s must specifically focus on marketing, logistics, and human resource management strategies.
Home Depot company offer a wide range of merchandise and services, and serve three primary customer groups: do-it-yourself customers, do-it-for-me customers and professional customers. A classic Home Depot store stocks approximately 40,000 to 50,000 product items, including variations in color and size. Major product groups include building materials, lumber plumbing, electrical and kitchen; hardware and seasonal, and paint, flooring and wall coverings. To balance the national brand name products it offers, the Company has formed strategic associations with vendor partners to market products under brand names that are only offered through The Home Depot. “As of fiscal year-end 2001, the Company offered products under more than 30 proprietary and other exclusive brands, including Thomasville kitchen and bathroom cabinets; RIDGID power tools; Behr Premium Plus paint; Mill's Pride cabinets; GE SmartWater water heaters, and Vigoro fertilizer.” ("The Home Depot", 2004)
In liasion, the company’s products include services for home improvement professionals and contractors. This marketing mix from Home Depot highlights the quality of service they wish to provide. On the other hand, the majority of the products at the firm’s stores are from third parties, such as equipment manufacturers. Home Depot’s multi-faceted product mix include building materials, lawn and garden products, and home appliances, among other things. Kitchen and garden products accounted for nearly 27% of revenues in fiscal 2014 making them the best-grossing product categories. (Exhibit*- Revenue by product
Home Depot operates in the home improvement retail industry that comprises of retailer that sell appliances, lumber, building material, kitten fittings and other home improvement products aimed at improving existing structures. Companies functioning in the home improvement industry buy products from retailer and manufacturer based all over the world, and then put those products for sale on the market to three types of buyers, generally characterized as: do-it-for-me, do-it-yourself, and professional customers. The home improvement retail industry is well established industry and is highly attractive and there is high level of price competition among the key players of the industry as the products lines are all the same.
b. Sears Essentials was originally planned as stores in areas where there was no competition, but may be expanding into areas with high levels of competition
The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon which are gaining considerable market shares in many of the product segments included in the specialty retail sector.
BCBG provides most of its sales revenue through "bricks and mortar" stores, which means they have a physical presence. For the most part they generate their business through their own retail stores, as well as wholesaling to Macy's, Bloomingdale's and Saks. But they also do a lot of their business online. They offer their own BCBG websites as well as selling on the Macy's, Bloomingdale's and Saks websites. They also sell to specialty boutiques online such as Edressme.com. BCBG has hit the stores and the Internet to generate their profit. The organization makes out very well from both aspects and they have Account Executives that monitor both the buying from online and the physical stores that they have for each region of the country. Management is also broken down into the departments and lines that are being sold, and each takes on both the online part and the physical stores responsibilities. They offer almost the same merchandise online as they have in the stores and generally the pricing is the same. But online stores sometimes offer more discounts. The pricing strategy used by B...
Toys R Us ventured into a partnership with Amazon.com to improve the e-commerce division of their business. Internet retailing was cutting into the profits and the market share of Toys R Us. This financial effect was the reason they the needed to improve and establish themselves in the Internet market. This Internet market was clearly the way the trend was going, as indicated by the growth of retailers such as eToys.com and SmarterKids.com. Toys R Us needed to establish itself in this market, since bricks and mortar retai...
The five senses are hearing, touching, seeing, smelling, and tasting. These five senses trigger memories of feelings and emotions. Recently, I have discovered the wonderful products of Scentsy, where I find myself in bliss when I imagine my favorite products and scents. Scentsy has been around for nearly ten years and was created by the Thompson Family. Their mission was to bring value to others by owning a family-friendly business. The products that Scentsy sells are very artistic, beautiful, creative, and are of high-quality products that, “Warm the Heart, Enliven the Senses, and Inspire the Soul.” With that said, their products stimulate the use of all five senses.
Primark is popular clothing and homeware product; the main aims of the business are to provide what the customers want in a good quality and low price to customers. Its product includes menswear, womenswear, footwears, childrenswear, and home accessories and it has employees around 36000 workers. However, the company has been facing such problem since the last decade and trying every now and then to keep the reputation of the brand and sale of the company intact. The company is well known for selling clothes at a cheaper price in the market industries.
The % of sales of large scale suppliers like P&G, Lever, PepsiCo, and Kraft with Wal-Mart is higher than the competitors ensuring maximum product availability, demand fluctuations and supply chain variability linked with promotions(Graff, T. O. (1998).)
One of the greatest opportunities for Amazon is an Online Payment System. The online system allows the company to reduce transaction fees and increase ease of use for their customers. Internet sales are increasing at a fast pace. This is a product of increased fuel prices, which make driving to a store less likely, and foreign purchases. This development allows foreign purchases to buy clothing as it becomes more popular abroad. Amazon’s biggest competitors can include retail stores that online stores such as Target, Best Buy, and Walmart among others, these can be considered the most dangerous for them since they have strong market share and can be a direct competitor since they attack the same market. Amazon wish to compete in prices, offering
Second, the rapid development of the Home centers such as The Home Depot, with prices 30% less than the traditional hardware store made Black & Decker to lose market share to Makita. As per Exhibit 2 we could notice that in the home center channel that represent 25%of the trades...
In 2016, Bed Bath & Beyond had the largest market share of any home goods retailer in the country with over ten billion dollars in sales (Statista, 2017). The next closest in sales was Ikea with just under seven billion in sales (Statista, 2017). Bed Bath & Beyond appears to be thriving in some areas; they have an efficient store set-up, a variety of products that appeal to their multiple target markets, and the supplier network to keep up with any fluctuation in demand (Zacks Equity Research, 2017). However, there is a multitude of options that Bed Bath & Beyond can use to improve their sales. For example, they could begin by assessing their products and inventory since the economies of the countries that Bed Bath & Beyond has stores in are
Although relationship customers also use the BAS system, it is more valuable for transactional customers. Since transactional customers emphasize more on quick delivery and low prices, but less on relationships, A/S focuses its efforts with the BAS system on providing the transactional customers with these values.