Deck 4: Evaluating the Com

Question 1

What are the various models of retail competition
Can a retailer ever operate in a pure monopoly situation If you believe that this is possible, provide an example and explain what dangers this retailer faces. If you believe this is not possible, explain why not.

Answer 1

Pure monopoly in retail is far from reality. However, near monopoly in retail is possible. For example, a franchise of an established beer parlor that has high brand value can be a near monopoly in a town. Monopoly retail has the risk of becoming inefficient and less innovative, because it lacks the challenges from the market. If the monopoly retail disregards its stakeholders, it would be challenged by competitors who have the solution to serve the customers better.
It is difficult to have complete monopoly in retail, because there are always alternate solutions and substitutes for the retail outlets. For example, because of the internet and e-commerce, monopoly in retail is completely eliminated.

Question 2

What future changes could affect retail competition
Several possible explanations were given as to why retailers from smaller countries tend to do better when entering foreign markets than those from larger countries. Do you agree or disagree with these explanations Explain your reasoning.

Answer 2

The researchers and experts in retailing have observed that retailers, hailing from smaller countries have achieved remarkable success than their counter parts from larger countries such as the US. The experts attribute two factors to the success in overseas market by retailers from smaller countries. Primary factor is that retailers from small countries are sensitive to the culture of the foreign country, and they undertake necessary adaptations to their stores. Second characteristic of the small country retailers is that they do not consider success as automatic; they work hard and work slow to achieve the success. The retailers from large countries take success as granted, and fail to recognize the subtle adjustments they need make in the foreign market.

Question 3

You are thinking about buying a Ford Focus after you graduate this semester. Use the Internet to see if you can get a better deal than the traditional auto retailers offer. All you will have to do is make three online connections, all free.
Start by using DealerNet (www.dealernet.com), created by Reynolds Reynolds, which provides computer services to dealers. You can see a picture of the Ford Focus and find out how it compares with competitors like the Chevrolet Cruze in such key areas as trunk space, fuel economy, and price.
Suppose you decide on the four-door Titanium Model because you really want 17" sport aluminum wheels and the SYNC voice-activated system. Key over to the prices posted by Edmund Publications (http://www.edmunds.com), a longtime compiler of such information. There you discover what the current sticker price is for the Titanium Model as well as what the dealer pays. You can also explore the Edmunds site to find out what special discounts and financing are available for the car you want. These facts may help you in evaluating the price your local dealer quotes.
When you're ready to order, type in "http://www.autobytel.com." There are several buying services on the Web, but AutoByTel is free. From here you can buy the car using AutoByTel directly or placing your order, and you'll get a call from a nearby dealer. The dealer will charge you a fixed amount over the invoice and deliver the car. Now you've saved enough to buy a copy of this valuable text for all your friends.

Answer 3

The web or internet facilities available in the modern business environment make the customers to take firm decisions while purchasing a particular product or service. Here in the given scenario the individual prefer to buy a specific model of the car from the brand F. for this he visits the website of the specific brand and enquires the specifications of that car and evaluates whether it meets his expectations. Since the organization F has developed a well designed website which reveals the specifications of all its products, the customer could understand it clearly and could make the buying decision.
As the specified website doesn't offer the service of online ordering and comparison of prices, specifications with other cars he is opting for another website which reveals the information regarding the specification, price etc of almost all cars. Through this website he is also getting many discounts and attractive offers when he places the order for the car. This facility attracts him and he finalizes to place order through the private website.
Here the buying process follows a series of steps which includes the customer placing the order through online, the nearest dealer calling the customer and finally closing the sale. Through this customer service and convenience are enhanced which can make them loyal and can achieve competitive advantage for the organization. Through this process the customer can save money, time etc.

Question 4

What future changes could affect retail competition
Is it better for a retailer to develop a new private-label brand or to try to revive a once-prestigious brand that has been discontinued Explain your reasoning.

Question 5

Over the past year and half you worked at your church's not-for-profit resale shop. Over this period, while the economic downturn has hurt sales at the nearby shopping center, it has really benefited your shop. In fact, sales have soared as cash-strapped consumers sought out bargains and donors wanted tax deductions. For example, shop prices for blouses and shirts range from $1 to $15 and designer jeans sold for $5 to $25 a pair compared with regular retail prices that were at least triple those amounts. Actually, the shop attracted a wide range of customers ranging from white collar workers who needed work clothes to bargain shoppers who enjoyed the thrill of the hunt. As a matter of fact, the shop's consumers had a wide range in income and age, except for the students at the nearby college.
As you prepared to return to school to graduate, your boss asked you to prepare a report with your ideas on how to attract college students to the shop. As she sees the problem, students only come to the shop in mid- to late-October seeking polyester suits and wide ties to wear to Halloween parties. They fail to realize what good merchandise the shop is actually selling. What can be done to get them to purchase home furnishings from the shop when they decorate their apartments and dorms in the fall and to seek out clothing that is only gently used instead of going to the shopping center After all, she added, "We have labels like Old Navy, the Gap, Arizona Jeans, and Ann Taylor. It doesn't make any sense to me why students on a limited budget would want to buy anything brand new if the clothes we sell are well taken care of."

Question 6

What are the various models of retail competition
Why is it so important for a retailer to develop a protected niche

Question 7

What are the various models of retail competition
Many retailers undoubtedly compete on price. Why is the price the retailer charges for merchandise or services not the same as the total cost the customer pays

Question 8

What are the various models of retail competition
What are the ways a retailer can avoid or minimize competing on price

Question 9

What are the various types of retail competition
Provide an example of intratype competition that was not mentioned in the text. Provide an example of intertype competition that was not mentioned in the text. Can a retailer face both intratype and intertype competition at the same time Explain your response.

Question 10

What are the various types of retail competition
Can divertive competition occur only in intertype competition-that is, where two different types of retailers with a similar product compete with each other

Question 11

What are the various types of retail competition
Someone once said that "the supercenter format will kill the grocery retailers." However, this hasn't happened. Can you think of an explanation as to why this hasn't occurred

Question 12

What four theories are used to explain the evolution of retail competition
Describe the wheel of retailing theory. What are the theory's major strengths and weakness Does this theory do a good job of explaining what has happened to American retailers today

Question 13

What four theories are used to explain the evolution of retail competition
Describe the retail accordion theory of competition. What are this theory's major strengths and weakness

Question 14

What four theories are used to explain the evolution of retail competition
Would strategies for retailers differ in the four stages of the retail life cycle What strategies should be emphasized at each of the four stages

Question 15

What four theories are used to explain the evolution of retail competition
If a retail format enters the decline stage of the retail life cycle, does that mean that this format will be gone within the next decade Or can it linger in the decline stage for years Can a format ever reposition itself and return to either the growth or maturity stage Can you think of any current format that could reinvigorate itself

Question 16

What future changes could affect retail competition
Will the Internet ever completely replace traditional bricks-and-mortar retailing Provide a rationale for your response.

Question 17

What future changes could affect retail competition
If a new retail format is a hit in one country, it generally will be successful in all countries. Agree or disagree

Question 18

Buffalo Wild Wings: Competing for the Future
Buffalo Wild Wings (BWW) has experienced rapid, and at times explosive growth, since its founding three decades ago. The business, which focuses on Buffalo chicken wings and related fun food, was founded in 1982 with a single location in Columbus, Ohio, near the Ohio State University. Today, the business is an owner, operator, franchisor model; the franchising element began in 1991. Live sporting events are a focus of the customer experience with a typical Buffalo Wild Wing's restaurant having 50 or more televisions for viewing sports. Coordinated marketing and coordinated operational execution has allowed for a consistent brand image across locations; buffalo insignias, yellow and black color scheme, and stylized buffalo images help build this brand image. BWW has been successful in growing restaurant locations with 786 company-owned and franchise locations in 44 states at the end of the third quarter in 2011.
Growth Strategy
BWW needs to determine its strategy for competing for the future in which the restaurant industry is growing increasingly competitive and fragmented. BWW has a stated goal to continue to grow domestically and internationally. In order to grow successfully the focus is on the following strategies.
Continue to strengthen the Buffalo Wild Wings Brand.
Deliver a unique guest experience.
Offer boldly flavored menu items with broad appeal.
Creating an inviting neighborhood atmosphere.
Focus on operational excellence.
Open restaurants in new and existing domestic markets and new countries.
Increase same-store sales, average unit volumes, and profitability.
The current business concept is thought to be able to support a unit base of 1,400 locations in the United States with a target of 40 percent company owned and 60 percent franchisor owned. The first international play for the company was Canada with the opening of a Toronto location in 2011, with plans to open 50 Canadian locations in the next five years.
Business Operations
A typical Buffalo Wild Wings location is open on a daily basis with operating hours of 11 a.m. until 2 a.m. The hours of operation can vary depending on local regulations and day of the week. In addition, franchisors agree to operate their locations a minimum of 12 hours per day. Dine-in and carryout is facilitated through ordering with traditional table service as well as a counter that takeout orders can be placed at. Purchases of food ingredients and supplies are negotiated on a system-wide basis in order to obtain the best cost possible; additionally all sauces are manufactured by a single company with BWW owning the recipes and seasonings of it's signature sauces to prevent other wing establishments from using the same sauces. Chicken wings are the largest component of the food purchasing costs, and volatility in their prices could have significant impacts on the business. Currently, wings are purchased at market price, although long-term fixed price contracts are a possibility if market conditions warrant the change. BWW restaurants include a full bar, and, in Nevada, gaming; thus the business is subject to the regulations of the appropriate beverage commissions in all states in which it operates and the gaming commission in Nevada.
Financial Performance
A better understanding of the financial performance of BWW can be obtained by examining the data in Exhibits 1-3. Note that net earnings are after-tax net earnings.
Exhibit 1
Revenue Earnings Growth (in Thousands of Dollars)

Exhibit 2
Stock Price EPS

Exhibit 3
Same Store Sales Growth

1. If there is a BWW near you, visit the restaurant or if not take a look at them online (www. buffalowildwings.com). Identify what you see as competitors to BWW.
2. What do you see as the competitive advantage of BWW Be sure to discuss its value proposition.
3. Where would you place BWW and restaurants it competes with in terms of the retail life cycle
Sources
Buffalo Wild Wings 2010 Annual Report (10k). Available at: http://www.sec.gov/Archives/edgar/data/1062449/000110465911010383/a11-6492_110k.htm;
Buffalo Wild Wings 3Q 2011 Report (10Q). Available at: http://www.sec.gov/Archives/edgar/data/1062449/000110465911060500/a11-25636_110q.htm; and the authors' long-time patronage of BWW.
Note: This case was prepared by Mark Lusch as a basis for class discussion rather than to illustrate either effective or ineffective handling of a retail situation.

Question 19

What future changes could affect retail competition
What do you think about the projected growth of the rental format Would you rent your textbooks if an outlet was available on your campus If your best friend was getting married, would you consider renting a gown, handbag, or jewelry to wear for the rehearsal dinner