Table of Contents
Page
Chapter 1: The Questionable Future Facing Global Retailers 5
Chapter 2: Low-Cost Strategies I: Key Elements of a Low-Cost Provider Strategy 8
Chapter 1
1. Review the mathematical formula that represents value on page 2.
Value = Results + Process Quality
Price + Customer Access Costs
Describe the elements of value for two competing retailers. What can you learn from
2. Discuss how format blurring is self-perpetuating in nature, using a current example.
Format blurring generates a vicious cycle of action and reaction as the affected retailer now
3. Describe the competitive market facing conventional supermarkets.
1988 to 2011.
• Increased format blurring from dollar stores, warehouse clubs, extreme value stores,
4. Describe the competitive market facing traditional department stores.
One can argue that department stores face competition on the top of the price curve from
specialty stores (with large selections in a given merchandise area and high levels of
5. What is the impact of the increased number of retail bankruptcies on existing retailers?
There are numerous implications of the increased number of retail bankruptcies on existing
retailers.
6. Apply the concept of headroom to attracting and keeping desirable market segments.
Headroom represents “switchers” that are not loyal to either your retail firm or your
7. What are the pros and cons of using micromarketing as a differentiation strategy?
Pros of using micromarketing as a differentiation strategy include the following:
• Greater ability to adapt a retailer’s offering to specialized markets makes a store’s
8. Describe the pros and cons of retailers establishing different organizational units to attract
multiple segments.
Examples of using different organizational units to attract multiple segments include
common ownership at Aldi and Trader Joe’s, Nordstrom and Nordstrom’s Rack, Saks Fifth