(Solved Homework): A group of investors in your city is considering opening a new upscale supermarket…
A group of investors in your city is considering opening a new upscale supermarket to compete with the major supermarket chains that are currently dominating the city’s marketplace. They have called you in to help them determine what kind of upscale supermarket they should open. In other words, how can they pest develop a competitive advantage against existing supermarket chains? 1. List the supermarket chains in your city, and identify their strengths and weaknesses. 2. What business-level strategies are these supermarkets currently pursuing? 3. What kind of supermarket would do best against, the competition? What kind of business-level strategy, should it pursue?
Expert Answer
Ans 1=List of supermarkets=
Norte
Atomo
Wal-Mart
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ans 2=
Supermarkets draw on several pricing strategies to maximize profitability. The most obvious option is to offer lesser prices than all other stores, but an equally obvious outcome is that this strategy keeps profits constantly low. Due to this , most supermarkets employ more complicated strategies to safeguard their profitability while still attracting the price-mindful customers.
Leader Pricing
Leader pricing happens when a supermarket sells high-demand products at typically lesser rates, even if those prices need sustaining a loss on that specific item.
Everyday low prices
Supermarkets usually utilize leader pricing on a restricted basis as element of a temporary sale. An issue with this is that customers begin to mistrust ads. For example, a consumer might believe that there is a concealed catch, such as a requirement to purchase a big quantity of products. To avoid these issues, some supermarkets are taking ideas from big discount departmental stores by attempting to keep rates permanently less on high-demand products.
Zone Pricing
Big supermarket chains have volumes of info on customer purchasing habits. Some utilize this to build pricing profiles for various stores, called zone pricing. Establishing distinct pricing profiles, enables the organization to optimize its rates by region
ans 3=
The period of standardization is ending. Customer communities are becoming more diverse—in wealth, values, ethnicity, lifestyle, . Several regions, moreover, are now flooded with big-box stores , which threaten the unique features, like architectural styles & favored brands of the neighborhood. Coming to consumer markets, a single size no longer fits all. So, supermarkets & consumer products firms are beginning to customize their offerings for the local markets, rolling out various kinds of stores, product lines & unusual methods of pricing, marketing, manning & customer service. It is recommended to move from standardization to localization.
Blending sophisticated info analysis with innovative organizational arrangements , the supermarket can obtain the efficacies of centralized management without giving up the receptiveness of local authority. The chief advantage of shifting from standardization to localization is strategic. The former discourages experimentation & is easy for rivals to copy. Customization stimulates local experimentation & is tough for rivals to track.
