Argos Identifying Customers and Meeting Their Needs
In order to survive and grow in a tough and competitive marketplace, a retailer must differentiate itself from its competitors. How does Argos differentiate itself from its competitors? What is (are) its competitive advantage(s) that attract(s) its customers?
Argos has succeeded in differentiating itself from its competitors in a number of ways. Firstly, convenience of shopping because of the available catalogues to browse before visiting the store which are available as hard copies, in store or online. The convenience of shopping extends to provide home delivery for phone orders and online purchases. Secondly, value for money; Argos managed to reduce its costs mainly in two aspects the first one is “no cost of display” because of the provided catalogues and e-catalogues which means no goods on display in any shop, therefore, avoid the very expensive retails spaces. The second aspect is “economies of scale” which enabled Argos to buy in bulk and by having organized distribution system managed to reduce costs. These two factors were reflected on the price of Argos products. In addition the customers’ needs are met by the availability of a very high variety of products.
How does Argos’ mission statement reflect it competitive advantage?
Argos mission clearly states that it provides best value for money and most convenient shopping experience.
Argos is able to offer the customer value for money prices, because it has a low cost business model with limited product displays. In addition it benefits from economies of scale because as a popular national chain, it is able to buy in bulk and by organizing national distribution systems, is able to reduce logistics cost to a minimum. They also provide a very convenient way for customers to shop. They are able to look through a catalogue at their leisure and choose from an extremely broad product range. The range of what is offered is not limited by the display space in-store and can be accessed in a variety of ways
Argos has succeeded in differentiating itself from its competitors in a number of ways. Firstly, convenience of shopping because of the available catalogues to browse before visiting the store which are available as hard copies, in store or online. The convenience of shopping extends to provide home delivery for phone orders and online purchases. Secondly, value for money; Argos managed to reduce its costs mainly in two aspects the first one is “no cost of display” because of the provided catalogues and e-catalogues which means no goods on display in any shop, therefore, avoid the very expensive retails spaces. The second aspect is “economies of scale” which enabled Argos to buy in bulk and by having organized distribution system managed to reduce costs. These two factors were reflected on the price of Argos products. In addition the customers’ needs are met by the availability of a very high variety of products.
How does Argos’ mission statement reflect it competitive advantage?
Argos mission clearly states that it provides best value for money and most convenient shopping experience.
Argos is able to offer the customer value for money prices, because it has a low cost business model with limited product displays. In addition it benefits from economies of scale because as a popular national chain, it is able to buy in bulk and by organizing national distribution systems, is able to reduce logistics cost to a minimum. They also provide a very convenient way for customers to shop. They are able to look through a catalogue at their leisure and choose from an extremely broad product range. The range of what is offered is not limited by the display space in-store and can be accessed in a variety of ways