To complete this task in a week can I suggest that we all discuss the same retail
business and agree one period five today in class e.g. Poundland or Aldi perhaps then
we need to look at the following.
Theories that we need to understand and APPLY to the DISCOUNTERS include:
- What is and what happens in a recession - include articles in FT.com (shout out and a hat tip to Eleanor R and her fine and swift research skills)
- Government policy concerning planning permission for new store locations i.e. Oxford City and Botley Road developments - inc articles in the press
- Competitors - Monopoly (one business in the market), Oligopolies 9a few businesses in the market) and Monopolistic (many businesses in the market) with a reference to different locations including the high street, retail parks and shopping centre4s
- PESTLE and articles in the press
- ANSOFFS - targeting new markets = can the business develop new products or can the business target new markets. Is diversification realistic for the new business and can the business afford the costs associated with ANSOFFS theory
- Marketing Mix and the dominance of PRICE
- Michael Porters Five Forces is a method that helps companies look at the challenges faced in competitive markets and develop appropriate corporate strategies.
- Barriers to entry!
- Rationalisation - cutting jobs and cutting costs and non core activities
- Cutting capacity and store closures!
- Use of IT to drive change giving examples in the press
Exam Board Expectations
For P4, learners will need to understand competitive factors in the retailing environment that drive change
in the industry. Learners should identify aspects of government policy concerning planning guidance for
new store locations, specifically the influence of Planning Policy Statements. They should know how the
Competition Commission engages with the industry and, more broadly, how retailers’ costs and ways of
working may be determined by government policy. Other competitive forces should also be studied including
competitors, market position, barriers to entry and new retailing concepts.
The use of ICT to drive change should be understood through studying contrasting stores and the application
of ICT in marketing and stock management. Social and demographic trends can be evidenced through
store-based customer surveys and/or observations. Broader economic trends can be tied into a study of
the current performance of the industry as reported in the press. Competition should be explained though
a study of a shopping location, such as a high street or shopping centre, in the context of the retail industry
structure. Innovative products and services should be identified in one retailer and learners should explain the
role of these products and services in creating a dynamic industry. Assessment could be a report based on an
innovative retailer and the ways in which it adapted to its environment and how it uses change factors to drive
its business
Some competitive factors to consider include:
- Price
- Market trends
- Profit margins
- Customer service
- Quality of products
Some general questions that you might like to think about and include in this report
1. What is the market
position of your business today compared to five years ago?
2. Have you identified
the factors that are driving the change? eg PESTLE
3. Which factors do you
believe have had the most significant impact on the organisation you have
researched?
4. Is your chosen
business trading in a Monopoly, Oligopoly or monopolistic competition? How does
its position in the market affect its use of the 4P's
5. How has your chosen
business been affected by the recent recession?
6. Is the store
declining in terms of unit sales or value?
7. If the business has
done well state three policies that
it has implemented to responds to the recession e.g. Greggs did well because it
....
8. Why do you think that
these strategies have apparently worked?
9. If your chosen
business has done badly state three
reasons why they could not overcome the problems caused by the recession
e.g. Borders
10. Why do you
think that some businesses were affected more than others during the recession?
11. Research Michael Porters five
forces looks at the changes companies face in competitive markets. In
order to deliver on their corporate strategy businesses need to negotiate these
five forces. What are they ?
12. How do Porters five
forces impact on your chosen business?
13. Would it be difficult
for retailers to change their offer and convert their stores quickly to serve
another market?
14. What new retail
concepts have evolved over the last five years and how has this impacted on
your chosen business? Have they followed this trend?
15. Did you mention the
competition commission? Has this commission ever need to engage with your
chosen business sector. When was the last time that this took place and
what happened?
I cant think of a quicker way to do this but know that you will trust me in finishing this last
P task!
Good luck and enjoy
Mr T
