Page 81 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment Pavitar Parkash Singh, Lovely Professional University

Notes Unit 4: Retailing Structure

CONTENTS
Objectives
Introduction
4.1 Environment and Competition
4.2 Competitive Environment in Different Retail Sectors
4.3 Government Policies in Retail Sectors

4.4 Retail Development and Competition
4.5 Summary
4.6 Keywords
4.7 Review Questions
4.8 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the concept of Environment and Competition
Discuss Competitive Environment in different retail Sectors
Discuss the Government policies of retail Sector

Explain the Retail development and competition
Introduction

Retail firms have altered considerably over the last three decades in order to survive. The
Impact of changes in the general retail environment and patterns of consumer shopping have
been discussed earlier: Other factors have also affected the way in which retailers have been able
to compete effectively. These factors relate to the modes of competition and the relative
advantages of size and location. They have made formerly competitive businesses unable to
continue competing and have brought new forms of retailing to the market.

4.1 Environment and Competition

In order to correctly identify opportunities and monitor threats, the company must begin with
thorough understanding of the marketing environment in which the firm operates. The
marketing environment consists of all the actors and forces outside marketing that affect the
marketing management’s ability to develop and maintain successful relationships with its target
customers. Though these factors and forces may vary depending on the specific company and
industrial group, they can generally be divided into broad micro environmental and macro
environmental components. For most companies, the micro environmental components are:
the company, suppliers, marketing channel firms (intermediaries), customer markets,
competitors, and publics which combine to make up the company’s value delivery system. The
macro environmental components are thought to be: demographic, economic, natural,
technological, political, and cultural forces. The wise marketing manager knows that he or she

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