Question.2186 - How Amazon Is Changing The Retail Industry?
Answer Below:
Q. Which competitor will be harmed the most and which the least? and why? Ans. The age-old practiced retail stores were the most harmed and the E-Commerce retail stores are the least harmed ones. This is because the individual stores were specialized with a particular section of needs but now the E-Commerce stores have everything in one place, be it grocery items or clothing or pet-related products, etc. Previously people had to go to different stores for different items. Like medicines at medical stores, clothing at different stores, and so on. But now all are available under the same roof and shopping has become easy as it’s available at the doorstep. Q. Consider in your discussion the components of the macro-environment, the five force model of competition, common weapons for competing with rivals, and game-changing strategies. Ans. There are six components of the macro environment. They are Demographic, Economic, Natural, Technological, Political, and Cultural environments. The five forces model of competition is the intensity of rivalry, the threat of potential new entrants, the bargaining power of buyers, the bargaining power of suppliers, and the threat of substitute goods and/or services. The common weapons for competing with rivals are: Discounting prices, holding clearance sales; Offering coupons, advertising items on sale; Advertising product or service characteristics, using ads to enhance a company’s image; Innovating to improve product performance and quality; Introducing new or improved features increasing the number of styles to provide a greater product; Increasing customization of products or services; Building a bigger, better dealer network; and Improving warranties, offering low-interest financing. The game-changing strategies are: Embrace gender quotas: Broaden the role of the board chair: Focus On Conversion Rate Optimization; Costovation; Business Model Innovation; Creating Packages or Productizing My Business Model Systemize and Automate My Business Processes Learning How to Do My Bookkeeping Referring People Elsewhere Rebranding. Q. Provide a common-sense approach for dealing with this situation. Ans. On the part of customers, they should wisely use the e-commerce forum for shopping. They should avoid shopping for unnecessary items and avoid becoming fools by their hands. On the part of the E-commerce platform, it would be wise on their part to get hold of the customers directly for selling the products. References Farber, D. (2020) Three strategies for becoming an industry game changer, Medium. Available at: https://medium.com/new-markets-insights/three-strategies-for-becoming-an-industry-game-changer-5d8c04ed8cd3 (Accessed: 05 July 2023). Hernandez, M. (2018) Game-changing strategies for Corporate Boards: Morela Hernandez, MIT Sloan Management Review. Available at: https://sloanreview.mit.edu/article/game-changing-strategies-for-corporate-boards/ (Accessed: 05 July 2023). (No date a) Macro environment - definition, factors, examples, components. Available at: https://www.wallstreetmojo.com/macro-environment/ (Accessed: 05 July 2023). Marie, L. (2022) 5 game-changers for your business, Liz Marie Strategy. Available at: https://lizmariestrategy.com/5-game-changers-for-your-business/ (Accessed: 05 July 2023). (No date a) Porter’s five forces: Factors of competition and examples. Available at: https://www.indeed.com/career-advice/career-development/porters-five-forces-example (Accessed: 05 July 2023). Philip, B. (no date) Micro and macro environment factors to be analyzed for companies, LinkedIn. Available at: https://www.linkedin.com/pulse/micro-macro-environment-factors-analyzed-companies-bobin-philip#:~:text=Six%20components%20of%20macro%20environment,Technological%2C%20Political%20and%20Cultural%20environments.&text=Demography%20can%20be%20defined%20as,race%2C%20occupation%20and%20other%20statistics. (Accessed: 05 July 2023). Sachdeva, R. (no date) Common ‘weapons’ for competing with rivals, LinkedIn. Available at: https://www.linkedin.com/pulse/common-weapons-competing-rivals-rahul-sachdeva (Accessed: 05 July 2023).More Articles From Business Management
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