Situation Analysis Essay Sample
1. Independent retailing is at risk of wiped out. Due to the flexibility in startup, there is a challenge of competition some given areas for certain kinds of customers. Input in various sectors is relatively lower since it is solely on one owner as compared to chain retailers. Bargaining power is low to suppliers as they consider chain retailers whose purchases are higher than independent retailers thus a greater discouragement to independent retailers. Decision-making may not be effective as it is reliant on a single proprietor leading to unfavorable competition in the field thus a risk of disappearance of independent retailers.
2. An independent retailer is one who founds a business and builds it up solely with all decisions and inputs dependent on him or her. Hiring of staff or consultants is possible in the business endeavor but all under a single proprietor’s likes and plans. Independence is the major advantage as there are no restrictions to make any decision since there is no other existing partnership in the business. Change is inevitable since the directive is from a single source owning the authority. Growth may be rapid since there is no conflicting investment decisions if at all the funds are available.
3. Ease of entry has less impact to chain retailers since variety dominates as compared to independent retailing leading to higher possibilities and quicker resolution for greater achievements. Independent retailing is impacted greatly in ease of entry as one's efforts both in capital and ideally may not be enough to start up a business with a stable foundation. A single entrepreneur may be too cautioners about risks involved in business, unlike a group or partnership who encourage each other.
4. Non-store retailing will continue to grow faster than stored based due to its greater exposure to customers and a wider variety of customers who range globally. Non-store retailing is cheaper since its majorly electronic. Electronic mode of communication is considered the fastest and cheapest in the modern world. Customers prefer electronic retailing since it provides a variety of goods to select from as compared to stored retailing thus outcompeting store-based retailing.
A non-store retailing is a form of business where the retailer has a direct relationship with the customer. The customer directly gets the required goods promptly after asking for them. In India, about twenty percent of the businesses are conducted under non-store method. The examples include direct selling like selling products such as cosmetics, jewelry and other simple and light items that one can easily carry. Mail order selling, automatic vending, telemarketing, electronic retailing are other examples of non-store retailing. The trend seems to grow in other places in the world because most people do not like moving around to purchase products. The retailer moves from one place to the other looking for the customers in their places of convenience.
The nonretail channels are like kiosks, local farmers markets, and free standing spaces at the indoor and outdoor malls both of this over a low detailed method of business. The payoff for the space is less that others and they both get to interacts directly with clients that give them more advantage in profit making. Most of them are affected mostly when it comes to safety to their things. They are good options for new businesses because they usually jury the products before offering membership.