Cabela Case Study Essay

Retailers conduct business to make a profit. To realize a profit, they need to sell their products at pricing levels set above individual item costs. Furthermore, to sell their merchandise, they also need to attract customers who are willing to pay their established prices. However, customers are very price sensitive. In fact, price is often the largest component of a customer’s purchasing decision, since it determines value in the mind of the customer. Therefore, while retailers want to maximize profit by maximizing product prices, customers want to maximize value by paying reasonable prices. Therein lies the challenge for retailers. They need to set product prices that drive profits yet offer value in order to attract customers.

Irrespective of price, if customers cannot access a retailer’s merchandise, the retailer is left with warehouses packed with product and store shelves full of inventory. It is, therefore, crucial that retailers find ways to connect customers with their products. In the past, that meant attracting customers to stores. That approach, however, no longer suffices. Increasingly, customers are demanding retailers to furnish them with a broader range of products and services, and customers want access on

Relevant to the Place strategy, this assessment will evaluate Cabela’s product selling locations, available distribution channels, and it will consider the impact of place decisions on the economic success of the company. In addition, it will describe the potential challenges facing management related to the implementation of Cabela's place strategy. Relevant to the Pricing strategy, it will evaluate Cabela’s product pricing system, the impact of the pricing system on the economic success of the company, and describe the potential challenges facing management, related to the implementation of a pricing