Business Models and Systems

Topics: Grocery store, Wal-Mart, Safeway Inc. Pages: 1 (314 words) Published: June 26, 2011
Business Models and Systems

The business model I have chosen is a local grocery store. This grocery store is not your standard model of the typical grocery store. The grocery store is called “Grocery Outlet”. The unique model behind this particular business is designed to benefit all who are involved. I live in a town of about 35,000 people, within this rather small town, in my opinion, are three major grocery stores and three locally owned but still rather large in size grocery stores, quit a f lot of grocery stores for such a small town. The model of grocery outlet is to go to the locally owned grocery stores and those that surround the immediate area, towns close by, and purchase the over stock of their supplies, these are products that the other business’ have purchased but have too much of in order to sell before expiration dates or shelf lives have expired. Grocery outlet buys these overstock of supplies at a greatly reduces rate and in turn can reduce the prices of these goods to the customer, offering a supply for a demand of cheaper groceries. The commerce is creating the exchange between business and consumer for grocery products at a reduced price to the consumer yet still producing a profit for the business. The Business Organization is a structured agreement between local business’ and the consumer, by buying the over stock of products from surrounding grocery stores Grocery Outlet cuts down the loss of product an increases profit margin for these local grocery stores yet passing the savings on to the consumer at a reduced price on groceries. The Business Occupation would incorporate the daily operation of the discount grocery store, the ability to negotiate for reduced prices on the over stock of the larger grocery store business’ and the offering of a new business model within the area.
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