Lecture 7 - Strategic retailmarketing proces

Question 1

Phases of the strategic retailmarketing proces

Answer 1

1) Analysis
2) Dynamic SWOT
3) Formulating Strategy
4) Tactical implementation
5) Evaluation

Question 2

Analysis phase

Answer 2

External:
1) competition
2) environmental exploration
Internal:
1) Strenghts & weaknesses

Question 3

Dynamic SWOT steps;

Answer 3

1) inventory of items
2) Find combinations
3) Determine relative importance
4) Cluster results

Question 4

Actions based on SWOT:

Answer 4

Strength & Threat -> defend
Strength & Opportunity -> attack
Weakness & Threat -> get out!
Weakness & Opportunity -> improve

Question 5

Formulating a strategy (levels)

Answer 5

• Corporate strategy (mission)
• Business strategy (policy for the upcoming years)
• Functional strategy (implementation of policy)

Question 6

Retail as a simple formula

Answer 6

Sales * Margin - Costs = Profit (P = S*M-C)

Question 7

Disadvantages of the simple approach

Answer 7

• No interaction between variables
• It’s not simple
• Optimization of strategy is complex

Question 8

Frictions in retail

Answer 8

• Short term vs. long term

- Internal focus vs. external focus

Question 9

Friction matrix (dimensions)

Answer 9

Y-axis -> long term vs. short term

X-axis -> external vs. internal focus

Question 10

Friction matrix (quadrants)

Answer 10

UL -> strategic market position
DL -> Tactical sales efforts
UR -> Strategic efficiency
LR -> Tactical cost reduction