MBA – Supply Chain
* Three aspects of value oriented retail strategy:
An expected retail strategy represents the minimum value
Chain elements a given customer segment (e.g., young women) expects from a Type of retailer (e.g., a mid-priced apparel retailer). In most cases, the following are Expected value chain elements: store cleanliness, convenient hours, well-informed Employees, timely service, popular products in stock, parking, and return privileges. If applied poorly, expected elements cause customer dissatisfaction and Relate to why shoppers avoid certain retailers.
An augmented retail strategy includes the extra elements in a value chain that Differentiate one retailer from another. As an example, how is Sears different from Saks? The following are often augmented elements: exclusive brands, superior Salespeople, loyalty programs, delivery, personal shoppers and other special services, And valet parking. Augmented features complement expected value chain Elements and they are the key to continued customer patronage with a particular Retailer.
A potential retail strategy comprises value chain elements not yet perfected by a Competing firm in the retailer’s category. For example, what customer services Could a new upscale apparel chain offer that no other chain offers? In many situations, The following are potential value chain elements: 24/7 store hours (an Augmented strategy for supermarkets), unlimited customer return privileges, full-scale Product customization, instant fulfillment of rain checks through in-store Orders accompanied by free delivery, and in-mall trams to make it easier for Shoppers to move through enormous regional shopping centers. The first firms To capitalize on potential features gain a head start over their adversaries. Barnes & Noble and Borders accomplished this by opening the first book superstores, And...