RETAIL STRATEGY 9
Retailstrategy is an important element of management and businessdevelopment especially in the dynamic market environment. Retailstrategy is critical for a business to achieve important businessgoals and responsibility of meeting market expectations. This makes aretail strategy a tool of business development and establishing newretail ventures. This is because business development is based on theextent that the business engages in viable strategies that will steerthe business growth through sales. This paper will review the topicslearnt in the course of retail strategy. This discussion will focuson strategies for increasing returns, implementing strategy throughtechnology and theories of of strategic management. Moreover, thispaper will discuss the dynamics of consumer behavior, changemanagement as they relate to retail strategy.
Formulatinga viable retail strategy is important for a business to remaincompetitive in the industry. This is because the strategy guides thebusiness in identifying the target customer as well as the potentialconsumers for future business growth(Walker & Mullins, 2010). Throughthe identification of target customers, a business is able to focusits production and marketing functions to fit their specific needs.The identification of potential customers helps the businessformulate its future business processes and product development tofit the standards that will attract the customer. Therefore, amarketing plan for the business is validated by the efficiency of theadopted retail strategies.
Retailstrategy formulation is important for a business to incorporate plansto place its marketing function in the global environment. This ispossible when a business is competing with global companies, both atlocal and global business environment. The retail strategy also helpsthe business to extend its business scope to conform to theexpectations of the market, especially final customers(Walker & Mullins, 2010). Therefore,a business finds its planning on the penetration, retention andexpansion of the market based on the effectiveness of its retailstrategies.
Retailstrategy is an important element of increasing the returns of thebusiness by focusing on the consumer end of the business plans andmarketing of a firm. Adoption of business, retail strategies is meantto introduce the business into a world of higher sales andperformance of the products in the market (Hammond et al, 2014). Thisis aimed at increasing returns by focusing on the returns realized bya business after the implementation of the strategy. A retailbusiness will focus on making its revenue by attracting customers,retaining them and promoting their loyalty through new and innovativestrategies. These strategies help the business to remain viable andextend their market expansion through increased returns.
Throughincreased returns, a business strategy is able to establish theeconomic value for its owners and stakeholders due to increasedprofitability. The interests of the owners are increased economicvalue of their investments through capital appreciation of theirstake in a business, brought about by the profitability of thebusiness(Walker & Mullins, 2010). Thisis only achieved through the adoption of favorable and competitivebusiness, retail strategies that assure the business of profitabilitythrough increased sales. Therefore, the use of the retail strategydoes not benefit the management alone, but also an appreciation ofthe business value and attract more investment ND capital. Therefore,the use of retail strategies should be adopted for both short termand long term benefits of the business.
Retailstrategy and Technology
Adoptionof a retail strategy is further made critical by the moderndevelopments in technology and new technological applications. In themodern world, the world is based on the developments in thecommunication technology and the development of internet basedbusinesses. Incorporation of technological methods in the formulationof retail strategies is critical and unavoidable for a business toremain competitive (Lambet al, 2008).This is because technology places the business at par with thecompetition and the current market environment where consumers arebasing their purchasing behavior of the new methods in technology.
Technologyis important in strategy formulation since it makes it easy for abusiness to contact and share information with the customer. Thismakes the customer experience with the products and the business morefriendly by allowing them to place their orders and responses throughmethods that are already at their disposal (Hammond & Berman,2014). For instance, the use of social media as a method of reachingout to consumers makes it easy for the business to post informationto customers and receive their responses and feedback about aproduct. This is done in a faster method since most customers usesocial media on a daily basis, a platform that is at their disposal.
Moreover,incorporation of technology to the formulation of business strategyallows for better retailing methods and reach more customers. This isbecause the internet and eCommerce has become a new and the centralpoint of retail strategies for many businesses due to the benefitsthat come with the platform (Peter& Donnelly, 2006).Adoption of commerce as a retail strategy expands the reach of abusiness, retail function to the global level and acquire globalmarket share. Therefore, technological methods of commerce, lead toincreased returns and business performance in the global competition.Continuous developments in technology make the future of the businessbased on the ability to develop products and market strategies thatsatisfies the needs of the tech-savvy consumers that demandfriendlier customer experience based on technology (Hammond &Berman, 2014).
Theoriesof Strategic Management
Formulationof viable retail strategies is a process that incorporates all thefunctional roles of management and business strategic management.This is because it is a management function that determines thesuccess of other functions of a business. A retail strategy will haveto incorporate the theories of strategic management by including thecritical functions and elements of management. Retail strategy ispart of the planning process and will be important to involve all thedepartments and created business functions(Peter& Donnelly, 2006).Throughproper planning, a business will establish stronger businessstrategies that are consistent with other business functions. This isbecause a business strategy is part of the marketing plan that is alarger component of a business plan.
Aretail strategy for a business should incorporate the relevantorganizing functions as a way of ensuring its operation andimplementation is smooth. This is because every strategy will requirethe use organizational resources that will be allocated by themanagement (Lamb et al, 2008). This means that the implementationprocess will utilize financial resources and human resources, whichare the main justifications of the organizing function. In addition,a retail strategy will utilize controlling functions as a way ofensuring that the expected results are achieved within the limits ofthe business targets. This means that a retail strategy will beregularly evaluated against the marketing environment, industrystandards, business goals and consumer expectations (Walker &Mullins, 2010).
Tolead the retail environment is another strategic element of a retailstrategy since it focuses on establishing a competitive marketposition. As a way of achieving the targets of the business in itsmarketing and business development, a leadership in the retailenvironment should be the main goal of the strategies that thebusiness undertakes (Hammondet al, 2014).Therefore, the uniqueness of the strategy and its responsiveness tothe customers’ needs makes it possible for the business to becompetitive.
Everyretail strategy should incorporate the dynamics of consumer behaviorfor any successful implementation process. A retail strategy shouldconsider the factors that affect the changes in consumer behavior andthe elements of the market that influence their choice. Mitchell(2008) argues that this will make the strategy more responsive to theconsumers and able to predict any future consumer behavior. A retailstrategy that ignores the dynamics of Consumer behavior is meant tofail due to the strength of the consumers’ behavior of the marketdynamics (Walker & Mullins, 2010).
Theretail business strategy should focus on the formulation of productsthat reflect the needs of the consumers. For instance, the businesscan implement a favorable customer service and friendly response tothe customers demands as well as tastes and preferences. This willmake the customers satisfied and so develop into loyalty to theproducts of the company (Walker & Mullins, 2010). The businessshould also establish friendly locations of products and services soas to present the business as close as possible to the customer(Boyeret al, 2004). Therefore,the friendliness of the location and the appropriateness of theproducts becomes the main inspiration for the retail strategy.
Asthe main element of retail strategy, a business should carry out acomprehensive research to understand the consumer behavior and thechanges that take place in the market. This will provide themanagement with the appropriate information that will guide itsretail strategy formulation process (Walker & Mullins, 2010). Toachieve a competitive retail strategy, a business should use theright information concerning customers and consumer behavior in themarket.
Theretail market is one of the most dynamic management environments dueto the dynamism of the consumer behavior in terms of fashion, trendsas well as changes in tastes and preferences. Therefore, a retailbusiness strategy should be formulated in response to the currenttrends in retail market (Walker & Mullins, 2010). In addition, aretail strategy should be formulated in anticipation of futurechanges in future market trends as well as changes in trends on theside of consumers.
Torespond to these changes, a retail strategy should establish aframework of working with all the departments of the business such asthe production and advertising in order to address the needs of theconsumers (Walker & Mullins, 2010). Therefore, a retail strategyshould adopt better methods of gathering information on whatcustomers want and what they may need in future. Therefore, abusiness should incorporate strategies and solutions that will reactto changes in the marketplace.
Retailstrategy is an important element of the business strategy as part ofachieving the goal of increasing business performance. This isbecause retail strategy leads to increased returns and profitabilityas well as improvement in the business performance by usingappropriate strategies. In addition, a competitive retail strategyallows inclusion of management functions and performance strategiesas well as understanding consumer behavior. Moreover, a retailstrategy of a business should incorporate all tHe necessarystrategies for reacting to market changes and respond to change. Thismakes the retail function of a business more competitive and achievehigher market performance.
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