1. What overall conclusions do you reach after reading this case? The information in the case gave the overall conclusion that the apparel industry is a very competitive field to get into and in order to prosper companies must find their own personal niche within the industry. A company cannot survive in the apparel industry by providing what is already available in other stores. It is important to define a target market and appeal to their needs and wants. For instance, Wal-Mart appeals to low income individuals, Target and Old Navy appeal to more fashion sensitive customers, and so on. Ultimately, stores must relate and direct efforts towards specific apparel shoppers demographics and preferences.
2. How can apparel retailers compete with Wal-Mart?
To compete with Wal-Mart you need to think of Wal-Mart's competitive advantage: price. Your stores competitive advantages MUST stand out, and be in demand. You must have a style clothing that appeals to your target market if you want to compete with Wal-Mart. This means marketing based on style, name brand, and higher quality clothing. Wal-Mart can't offer any of these things. Also, if you try to market to another demographic such as Hispanic Americans or Asian Americans you might find a niche that has not yet been tapped into.
3 Does cross-shopping affect apparel retailing? Is this good or bad? Why?
I think cross-shopping definitely affects apparel retailing. People will go to different stores and shopping centers in one shopping trip to look for a specific item, the best prices or just a different look. Low income shoppers may shop around for the best bargains. For retailers, cross shopping can be a good thing and a bad thing. If a person starts out at a particular store and doesnt find anything they really want they may buy something somewhere else just because they are tired of looking. Stores also have to stay competitive with their prices in order to keep...