Primary Problems/Decisions to be made:
Bass Pro shop started as an 8-foot-long display area in the back of a liquor store in 1971 and has expanded into a Fortune 500 company that employs over 8,800 employees and has annual sales estimating somewhere around $1.25 billion today. The question at hand is: should Bass Pro Shops continue to expand, and if so at what rate should they? The primary problems they might face when expanding are as follows. Could expansion hurt their brand image and if so how? The Competition outside of Missouri is going to be much greater. They will not have the publicity and brand recognition as they do in Missouri. Does Bass Pro have the financial resources in order to open new stores, if not then what are some options they can exercise? Will Negative publicity threaten their brand image as they continue to grow? Is the cost of overhead going to be too high initially for Bass Pro to expand at a fast rate, if so then at what rate should they expand yearly? These are all problems Bass Pro is going to have to face in the future. Through research and extensive problem solving, they will be able to make an accurate decision on rather they should expand.
II. SWOT Analysis:
Strengths:
1. Brand image:
a. Identification with consumer
-Store brand name enables product to be accepted and adopted more easily by consumers because of brand recognition
2 Selective Distribution:
a. Bass Pro is able to expand the product, name, and experience to a larger customer base without cannibalization of their company by setting a radius limit on how close their stores are built.
b. They meet the needs of their target market by building their stores in closer proximity.
3. Unique Store Image:
a. ...
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... a high brand image; while, maintaining customer satisfaction with existing customers and breaking into new markets. Bass Pro is one of the largest U.S. retailing chains of outdoor sporting goods and has an image to uphold, not only with its name but with its products. Maintaining customer satisfaction with existing customers keeps them loyal.
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
Objectives:
1. Open two stores each year for the next five years.
a. Expand at least two of those stores in western states
2. Increase sales by 25% to $1.5 billion in the next 4 years
3. Increase sales to current customers by 5% each year by using innovative technology in order to find more efficient ways to distribute and manufacture our products leading to more competitive pricing.
Lowe’s grew through strategic choice by heavily focusing on key functional areas involving research and development (R&D), marketing, and logistics. Lowe’s important R&D investments included the creation of two prototype stores. The first prototype with 147,000 square feet catered to large markets and the other with 120,000 square feet catered to smaller markets (Rouse, 2005). Lowe’s used these store prototypes to help guide their continued growth and store placement. The prototypes also aided the company in designing future stores more efficiently with respect to energy and sustainability (Lowe’s Companies, Inc., n.d.). Furthermore, Lowe’s marketing strategy concentrated on attracting new customers and enhancing current customer satisfaction. To bring new customers to the store, Lowe’s engaged in a pull marketing strategy (Wheelen & Hunger, 2012). The com...
• A more competitive, efficient and profitable business with less competition in the domestic markets.
Disadvantage: increase the expense of leasing and managing retail stores; widely distribution will produce more opportunity to competitive with competitors directly, for example, they are located in the same mall.
b. Cover who they are, what has been done, when new stores open and what stores are open now, locations, and the aim of these new stores.
With increasing transportation costs and tighter margins there is a possibility that some large specialty retail players will consolidate assets, knowledge and outsourcing capabilities in order to generate economies of scale and scope.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.
By putting the warehouses in strategic locations, you provide better access to those customers in more remote locations. By taking advantage of this, Under Armour will not only expose itself to new customers, but will be able to continue to dominate the athletic performance apparel industry.
1) For a channel to succeed four location decision factors are considered; economic conditions, competition, the strategic fit, and the cost of operations. Stores need ...
Nordstrom’s retail positioning strategy provides it with the competitive edge it needs to differentiate it from competitors who also serve similar markets.
Since Best Buy sells the same items as competitors like Walmart and Target, Product Differentiation is an area that needs improvement for Best Buy. Where Best Buy excels for the Possible Competitors category is with their services. Developing specific services that are tailored to the customer needs and preferences allows Best Buy to have a competitive advantage. Consumers that shop at Best Buy often shop their because they can see the product in person and get information about new technologies or products prior to making decisions.Because Best Buy is a retail store that means its supplier are companies that produce electronic goods. The electronic goods market is saturated with manufactures and this gives best buy an advantage as it can offer more selection than some if it competitors in the specialty market of electronic goods. There are many alternate industry providers that can provide electronic goods to the costomers but with the recent failure of Radio Scach few speciality electronic stores remain, this provides an dadvantage for Best Buy.
... this and their marketing strategy will be key if they are to remain viable, grow and compete in the market.
A firm 's competitive advantage is achieved through offering customers a greater value, either by way of lower prices or by providing greater benefits and service that justifies a higher price. Nordstrom strengthens its competitive advantage and generic strategy through cost leadership and differentiation in order to differentiate themselves from other high end retailers. Nordstrom has consistently maintained a unique reputation from their establishment in 1901 to the today. Since developing a strong competitive advantage from inception, Nordstrom has been able to adapt to changing environments and market conditions to maintain their success. Nordstrom has set the bench mark in the retail sector through customer service and product quality.
The source of the brand features is in a connection between customers and companies that sell services or products. Consumers who choose a specific company fundamentally acknowledge to prefer that brand more than other brands rooted from the recognition of the brand’s worth.
The ability of the management in positioning and establishing the product is a success in any company that operates for marketing and profit acquisition. Furthermore, the ability of the company and its management to complete and maintain a competitive edge among its competitor throughout the product differentiation is another basis to say that is successful. Also, innovation and the constant development on the product lines and the growing number of customers also define the corporate standing of a company. Effective branding strategy and strong brand name are an important part of the profitable business. But, all the strategies and all marketing theories can be worth nothing without the compliance of the desires of consumers.