Page 131 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes International retailing is an essential ingredient for the global economy. International
retailing satisfies the increasingly complex and demanding needs of global consumers.

Retailing is predominantly a domestic market activity. The total business of the vast
majority of retailers is done within one particular country and in many cases, within one
specific region or district.

A company’s value chain is not bounded by a company’s border. It is connected to what
Porter describes as a value system.

6.10 Keywords

Activities: They are the means by which a firm creates value in its products.

Intangible resources: Factors such as open space, beauty, serenity, wisdom, diversity, and
satisfaction that cannot be grasped or contained.
International retailing: Worldwide tendency towards concentration in retailing, create huge
buying power in the big international retail chains.
Retail mix: It is the blend of various retail activities that in totally present the whole concept of
retailing.
Situational analysis: The process of seeking targeted information in a specified area, then
providing feedback to the prospect or customer regarding critical information that you learned
from them.
Store's objectives: It ends that the store seeks to achieve by its USP and operations.
Strategy: Strategy plan of action or policy designed to achieve a major or overall aim.

Value chain: It comprises all the activities an organisation needs to undertake in order to create
or add value to its products or services.

6.11 Review Questions

1. “Retailing today is at an interesting cross road.” Elaborate.

2. “The Indian retail market is quite large but highly fragmented.” Do you agree? Justify
your answer.
3. Explain the levels at which a retail organisation’s strategy is developed.

4. Discuss the retail strategy planning process in detail.
5. Describe the growth strategy used by the retailers to expand.
6. Retailing is predominantly a domestic market activity. Do you agree with the statement?
Why or why not?
7. State the purpose and concept of Porter’s value chain.
8. Explain Porter’s Value Chain in detail.
9. “A company’s value chain is not bounded by a company’s border. “ What do you mean by
the statement?

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