The Importance of the Retail Industry to the World Economy

875 Words2 Pages
bulb-icon

Recommended: Importance of retailing to the economy

Executive Summery

The retail industry is a very important part of the world economy. “Variety can be categorized by different level of service, and generally fall into one of the following categories: discount department stores, wholesale clubs, supercenters, hyper marts, and so-called category killers” (Variety Stores). A retail business operates in a fixed market location selling goods and service for consumers. The retail industry buys goods from the supplier in large quantities to provide to consumers and make a profit. This could include anything from consumer product and delivery of products to consumers.

PESTLE analysis

Political

The change in politics and policy sometimes affects domestic and international firms. However, the retail industry has benefited from the free trade agreement between the United States and Asia. This has given the U.S. market the opportunity to expand and have a huge profit.

Economic

The United States is the number one consumer in the global market. The global market depends heavily in the U.S market. Due to the free trade agreement, the U.S market has grown rapidly. Also, the market was able to provide goods at low cost, encouraging sales growth and increasing profitability. However, the current situation with the economy could slow down the growth of the industry due to the price of crude oil continuing to rise. This affects the overall industry. Moreover, the increase in the price of oil affects the consumers because the cost is transferred to the consumers.

Social

Knowing the consumer’s needs and wants is necessary for the industry to be successful. However, not understanding the customer’s needs could potentially harm the company market share.

Technology

The opportunity on t...

... middle of paper ...

...al force is also the most important force that the industry needs to always keep an eye on. If there is any change in the external environment it could hurt the industry overall. In order to avoid these things the industry need to constantly monitor the external environment and have a backup plan to change that might happen.

Reference

Important Part of Retail Business. (n.d.). Retrieved from http://ivythesis.typepad.com/ topics/2009/01/important-part-of-retail-business.html

Global Powers of Retailing 2011 (n.d.). In Deloitte. Retrieved June 10, 2011,

fromhttp://www.deloitte.com/assets/DcomGlobal/Local%20Assets/

Documents/Consumer%20Business/dtt_globalpowersofretailing2011.pdf

Variety Stores. Encyclopedia of American Industries. Online Edition. Retrieved

June 10, 2011, from Business and Company Resource Center. (I2501400716).

Show More
Related

  • Analysis of Express

    997 Words  | 2 Pages

    Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.

    Read More

  • REI Case Study

    707 Words  | 2 Pages

    The US employment rate has improved over the past years creating a leveled economy market allowing for society to have a more stable income than they have had in recent years. This improvement helps the retail industry to have a growth in the market.

    Read More

  • Customer Service

    340 Words  | 1 Pages

    Having prior knowledge of a customers needs, habits, and questions before or during every interaction and transaction can boost customer satisfaction. (Zueschner, Raymond. (1997). Communicating Today. Boston: Allyn and Bacon.

    Read More

  • Nucor Case Analysis

    749 Words  | 2 Pages

         Increased demand on a global scale due to increase in manufacturing across the world, opposite in U.

    Read More

  • Target Corporation Competitive Analysis Essay

    1800 Words  | 4 Pages

    Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware

    Read More

  • Industrial Analysis of Footwear

    781 Words  | 2 Pages

    Exploring the profitability of this industry, domestically retailers are struggling to maintain high profit margins. The solid industry growth expected for the coming years is highly supported by the economic turnaround in 2011, however many small retailers are feeling the pressure of low-cost imports . Reduced imports and the continued shifting of manufacturing operations to low-cost countries, creates a trickle down effect onto the fragmented market of companies, with a mix of small and large participants (see Exhibit 2). Increases in price-setting control of wholesalers, are causing downst...

    Read More

  • The Marketing Environment: Wal-Mart Corporation

    1488 Words  | 3 Pages

    In summary, it's no way around these forces there going to happen and exist in the business world. If you want to be a successful business adapt to these forces and understand each and everyone. Be prepared for the events and have proper responses to combat them and deal with theses factors successfully.

    Read More

  • Pest Analysis For Amazon.Co.Uk

    1052 Words  | 3 Pages

    Firstly, one of the most important focuses would be given to the target customer as we will need to know more about their taste and preferences. What it is they need and or want. Particular topics covering this area will be, the need for ‘Market segmentation’, identifying a competitive position in the market about to enter in the market and studying consumer behaviour, will all be discussed.

    Read More

  • Service based economy in the U.S.

    354 Words  | 1 Pages

    We say that we are heading toward a more global economy because of the fact that competition in today’s markets is global. This means that corporations in the United States can compete in foreign markets and vice versa, therefore U.S. corporations and foreign corporations become interdependent and thrive off each other. This can have a good impact on the United States because it allows U.S. corporations to seek materials and labor outside of the U.S. in countries such as China, India, and Mexico, where workers are paid a lot less money than U.S. workers, thus allowing them to sell their products for significantly cheaper than if they were produced in the U.S.; however, the tradeoff is that many American workers in the industrial sector lose jobs due to this shift of labor to overseas. In the long run this will be beneficial for the U.S. and although some percentage of workers are losing work, new jobs in the services sector, in fields such as computer technology, telecommunications, and language skills are opening up and experiencing growth because of this change.

    Read More

  • Competitive Analysis of Metro Holdings Ltd

    880 Words  | 2 Pages

    On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...

    Read More

  • Consumer Behaviour: The Needs And Motivation Of Digital Camera

    1980 Words  | 4 Pages

    Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.

    Read More

  • The Importance of Sound in Advertising

    3204 Words  | 7 Pages

    Rajagopal. "International Journal of Retail & Distribution Management." Emerald. Emerald Group Publishing Limited, 2011. Web. 21 Feb. 2014

    Read More

  • Essay On Evaluating Opportunities In The Changing Market Environment

    995 Words  | 2 Pages

    Economic conditions change rapidly whose effects are far reaching and hence require changes in marketing strategy. If a country or a region goes through a rapid decline a consumers spending pattern also changes. Interest rates and inflation affect buying. Interest rates directly affect the economy or situation. This is particularly important for business markets. Interest rates usually increase during periods of inflation. The economies of the world are connected and the economy of one country affects another. International trade is increasing and thus the change in the economy of one country affects the trade and commerce in another country. A marketing manager must watch the economic environment carefully. In contrast to the social and cultural environment economic conditions change continuously.

    Read More

  • The Negative Effects Of Globalization

    1314 Words  | 3 Pages

    Many Americans are used to getting the products they desire, at any cost. Trade with other countries is a necessity to the US because of the needs of the American people. Some examples of consumption could be wine, diamonds and gems, and vehicles. Another driving force in the global economy is cost of labor. Imagine the amount of money some companies would have to pay American workers to do the same work as some third world countries. Offshoring has become a big factor in the global economy. Many companies have opened customer service centers in different countries due to the savings. Clothing companies moved their manufacturing plants to other countries due to the cost of labor. Major stores in the US, for example, Wal-Mart, brings in most of their product from other countries to save money and pass that savings onto the consumer. Capitalism in the US has recently helped the global economy, the benefits of the Americans in the world’s marketplace is seen the return of money to the rest of the

    Read More

  • The Science Project

    1796 Words  | 4 Pages

    products they want. The goal is to not only provide consumers with what they know they

    Read More

More about The Importance of the Retail Industry to the World Economy

Open Document