Lecture 2 Flashcards
Functions of a strategy
- Identity
- Differentiation
- Criteria for assessing results
- Framework for planning daily activities
- Motivation
strategic process, 5 phases
analysis
dynamic SWOT
formulating a strategy
tactical implementation
evaluation
Analysis
External analysis
- Environmental exploration last week’s Retail Rollercoaster
o Economic, socio-demographic, and psychographic factors
- Competitor analysis
Internal analysis
- Strengths & weaknesses
- Sales and profitability
Formulating a strategy
- Corporate strategy
o Mission - Business strategy
o Policy for the year(s) to come - Functional strategy
o Implementation of the policy
Friction matrix
Longterm & external
Longterm & external
- Environment
- Market development
- Target group
- Positioning
- Concept development
Friction matrix
Longterm & internal
Long-term & internal
- Operational excellence
- Benchmarking
- Performance improvement
- Sales driven
Friction matrix
shortterm & external
External & short-term
- Price reductions
- Push marketing
- promotions
Friction matrix
shortterm & internal
Internal & short-term
- Cost control
- Productivity improvement
- Stock reduction
- Staff reduction
The scissors of retail
Costs tend to increase always over time, so sales have to increase
Pricing and costs in online retail
- Picking costs
- Fulfilment costs
- Marketing costs
Retail monitor formula
CA * VI = Attraction value
Influenced by the external marketing mix
C * AB = Transaction value
Influenced by the internal marketing mix
In online retail, we say there is no catchment area (CA)
Profitability
Trinity model:
- Goods
- Bricks
- People
It is not about lowest cost solution but highest efficiency solution!
Dynamic SWOT
- Inventory of items
- Find combinations
- Determine relative importance
- Cluster results
Formulating a strategy
▪ Market segmentation & target group
▪ Branding & positioning
▪ Channel & format strategy
▪ Location
