Retail Industry and managing technology
Porter’s five competitive force model include: New Market Entrants, Substitute Products and Services, Suppliers, Customers, and Competitors. In its most basic assumptions Porters model is the illustration of potential factors that may influence the outcome of a given companies effort in particular markets.
The retail industry can be used to amplify Porters model. In retail industry new market entrants may illustrate one of the rather signification factors in understanding competition. New entrants may chip away from existing customers that are enticed by marketing or lower introductory prices.
Similarly the concept of substitute product and services may impact retailers bottom line. The impact of generic or substitute products which may sway consumers to change brand or retailers is certainly of interest to retail industry.
Further, supplliers can have an equal impact because of their ability to manipulate constant stream of goods and services as well as their ability to initiate fluctuation in prices. Such factors influence the overall pricing strategy as well as proftiability of retailers.
Moreover, the end user i.e. customers can have an immense impact on retailers long term surviavability and profitability. The consumers choice to conduct their business with particular retailers can depend on many factors including prices, public image, product availability as well as customer support. Hence the slightest movement, both poistive and negative changes can influence the consumers shopping habits which may in turn influence the given retailers.
The last but not least important factor is comptition. Clearly, retailers or any for profit venture is fundementally influenced by quality and quanitity of its given competitors. Though some exceptions apply, the general rule of tump would dictate that competitors are the most obvious hurdle in market penetration and market domination.
Naturally all of Porters factors are subject to changes because of evloution in business and business practices. The most recent history which has included the immense evolution in informational technology including personal computers as well as internet have certainly had an impact on such models.
The evolution of interenet alone has created an immese impact by enabling consumers to have access to more products, more competitors, cheaper prices, as well as provide the ability to conduct comparison shopping. Widespread and cheap high speed internet connection in combination with reduced PC prices, makes virtually every houshold to a shopping information center.
Ultimately, it becomes the obligation of business decision makers to continoue to integrate technology and its repsective impact on their endusers into their business model. Manageing technology is not just another business aspect rather than playing a main role in creating and maintaining time appropriate and profitable business.
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Please also visit one of our online partners: Self Storage Owner -- Where self storage owners meet self storage customers. OR visit their dedicated Self Storage Press Release section.
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The retail industry can be used to amplify Porters model. In retail industry new market entrants may illustrate one of the rather signification factors in understanding competition. New entrants may chip away from existing customers that are enticed by marketing or lower introductory prices.
Similarly the concept of substitute product and services may impact retailers bottom line. The impact of generic or substitute products which may sway consumers to change brand or retailers is certainly of interest to retail industry.
Further, supplliers can have an equal impact because of their ability to manipulate constant stream of goods and services as well as their ability to initiate fluctuation in prices. Such factors influence the overall pricing strategy as well as proftiability of retailers.
Moreover, the end user i.e. customers can have an immense impact on retailers long term surviavability and profitability. The consumers choice to conduct their business with particular retailers can depend on many factors including prices, public image, product availability as well as customer support. Hence the slightest movement, both poistive and negative changes can influence the consumers shopping habits which may in turn influence the given retailers.
The last but not least important factor is comptition. Clearly, retailers or any for profit venture is fundementally influenced by quality and quanitity of its given competitors. Though some exceptions apply, the general rule of tump would dictate that competitors are the most obvious hurdle in market penetration and market domination.
Naturally all of Porters factors are subject to changes because of evloution in business and business practices. The most recent history which has included the immense evolution in informational technology including personal computers as well as internet have certainly had an impact on such models.
The evolution of interenet alone has created an immese impact by enabling consumers to have access to more products, more competitors, cheaper prices, as well as provide the ability to conduct comparison shopping. Widespread and cheap high speed internet connection in combination with reduced PC prices, makes virtually every houshold to a shopping information center.
Ultimately, it becomes the obligation of business decision makers to continoue to integrate technology and its repsective impact on their endusers into their business model. Manageing technology is not just another business aspect rather than playing a main role in creating and maintaining time appropriate and profitable business.
Brought to you by: RoyaltyUniverse -- Your one stop shopping information center.
Please also visit one of our online partners: Self Storage Owner -- Where self storage owners meet self storage customers. OR visit their dedicated Self Storage Press Release section.
Advertising:
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