Question 1

How can a small sporting goods store compete in a market with Walmart and still thrive? Explain and give examples.

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Question 2

What are the advantages of selling private-label brands?

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Question 3

What does it mean when a retailer builds a wall around its position in a retail market and why is it vital for its survival?

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Question 4

Comment on the following statement and decide if it is true or false: "All business activities can be used to create a sustainable competitive advantage."

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Question 5

Why are retailers more likely to be successful with the market penetration opportunities than with any other growth opportunity?

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Question 6

In the late 1990s, pure-play e-tailers flooded the Internet causing traditional bricks-and-mortar stores to integrate the Internet format as part of their selling channels. Which environmental factor influenced this investment?

Accepted Answer

The technological factor influenced this investment as advancements in technology and the rise of the Internet enabled e-commerce, prompting traditional stores to adopt online selling channels.

Question 7

Grocery Gateway is one of many home delivery grocery services that have responded to people's perception that they don't have enough time to accomplish all that they need to. Grocery Gateway frees up a couple of hours of time, and for many people that is an important benefit that outweighs the costs of the services. The existence of grocery delivery services is an example of how the __________environment affects market attractiveness.

Accepted Answer

The social environment affects market attractiveness as it relates to people's lifestyles and time constraints, which grocery delivery services address by saving time for consumers.

Question 8

Ellie loves to read and would like to establish her own bookstore, which would stock her favourite books. However, the consumers in her area are very loyal to Coles, so she is concerned about not being able to compete successfully. For Ellie, Coles is a/an:

Accepted Answer

Coles represents a barrier to entry for Ellie because it is an established competitor with a loyal customer base, making it difficult for her new bookstore to attract customers and compete effectively.

Question 9

Retail market size is typically measured in terms of:

Accepted Answer

Retail market size is typically measured in terms of retail sales dollars, as it reflects the total revenue generated from sales in the retail sector.

Question 10

Kroger supermarket has U-Scan Express machines for self-scanning in more than 200 of its stores. Self-scanning is efficient and popular. The U-Scan Express machine is a touch-screen terminal with scanner and a soothing female voice that guides customers through checkout. One employee can use a computer to monitor the activities at Half-dozen self-scanners. This is an example of how the __________environment affects
Market attractiveness.

Accepted Answer

The use of U-Scan Express machines is an example of technological advancements affecting market attractiveness by improving efficiency and customer experience.

Question 11

The objectives a retailer establishes after evaluating its strategic investment opportunities should:

Accepted Answer

The objectives should be comprehensive, including measurable indices, performance targets, time frames, and investment levels to ensure clarity and accountability in achieving strategic goals.

Question 12

Which of the following can be considered a barrier to entry in a market?

Accepted Answer

No available good locations can be a barrier to entry as it limits the ability of new entrants to establish a presence in the market.

Question 13

Which of the following is the most critical aspect of a retailer's situation assessment?

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Question 14

Retailers build customer loyalty by doing all of the following, EXCEPT:

Accepted Answer

Developing an outstanding supply chain system is more about operational efficiency and cost management rather than directly building customer loyalty.

Question 15

Which of the following examples/descriptions is an example of a market expansion opportunity?

Accepted Answer

Market expansion involves entering new markets or regions. Carrefour opening new stores in new European and South American markets is an example of market expansion.

Question 16

Lilly wanted to open a home improvement category specialist store, but did not because of the size of the local Kent and Home Depot stores. The condition of the retail market that discouraged her was the________ of the competitors.

Accepted Answer

The scale economy refers to the cost advantages that larger companies like Kent and Home Depot have due to their size, which can discourage smaller competitors from entering the market.

Question 17

What are the steps in the strategic retail planning process?

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Question 18

What are McDonald's competitive advantages and how has it developed such a huge loyalty from its customers?

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Question 19

The intensity of competitive rivalry in a retail market can be determined by:

Accepted Answer

The intensity of competitive rivalry in a retail market can be influenced by the relative size of competitors, market growth rate, high fixed costs, and the number of competitors. Each of these factors can contribute to the level of competition in the market.

Question 20

What should a situation audit assess?

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Quiz 4: Retail Market Strategy