The definition of perfectly competitive is “characterized by many buyers and sellers, many products that are similar in nature and, as a result, many substitutes. Perfect competition means there are few, if any, barriers to entry for new companies, and prices are determined by supply and demand. Thus, producers in a perfectly competitive market are subject to the prices determined by the market and do not have any leverage.” (Economics Basics: Monopolies, Oligopolies and Perfect Competition ) CiCi’s falls into this category because it sells a product that has many competitors, which means many substitutes. Companies like Pizza Hut, Hungry Howies, and local family owned businesses all run pizza and salad buffets around the same price per person. With so many options for customers to pick from; CiCi’s has to be very aware of pricing (since most people are “price takers” and want the best deals), tastes of the region, and service provided to their customers.
Target could have very well been in the monopolistic competition structure but did meet some of the structure points. Monopolistic competition structure has many firms and do not usually take into account the responses of other firms. This was the main difference between oligopoly and Monopolistic competition. Wal-Mart, K-Mart, Costco, and the few others in the scope of this type of retail chains are more considered a few than many. They all tend to react to each other’s
Gladwell points out, “There are companies that put tiny cameras inside frozen-food cases in supermarket aisles” (408). This strategy is how the companies collect data of shoppers’ natural tendencies without their knowledge. This data is used by companies to induce consumers to potentially purchase a greater amount than they would under different circumstances. Susan Willis explores the use of the same strategy information gathering in the essay “Disney World: Public Use/ Private State.” Willis believes that with the intimacy that the retailers know their customers there isn’t much room for deviation of a shopping
Although they might crave an affordable price, it is important to still be exposed to stylish, unique choices. Luckily, there are major retailers that cater to both types of customers, and Walmart and Target are just two of them. The United States mass-market is dominated by many firms, but Walmart and Target are two extremely well-known retailers who cater to the ever-changing crowds of consumers. Each major retailer has differentiated themselves in a number of ways, targeting different groups and finding their own unique niches. They both participate in giving back, they both take corporate social responsibility seriously, and both make their store experiences memorable.
Does one rival have a somewhat weaker strategy than the other two? • No, Costco, Sam’s, and BJ’s Wholesale do not have the highly similar strategies. All of there are different in many ways, Costco prefer to offer their customers items in bulk and reasonable prices. By doing that Costco believe they could generate more customers because they are providing more products at a discounted price so the customers would feel like they are getting more for their money. BJ’s strategy focuses on providing their shoppers more groceries and packaged goods in small portions.
They all had low prices, warehouses ranging from 70,000 to 130,000 sq ft (some up to 160,000), and very low operating costs, sell products in bulk packaging and offer membership. They are all so alike that it pretty came down to which ever store a customer went to first they would stick with. All three wholesale clubs have similar strategies. They sold high-quality brand-name merchandise at prices that were significantly lower than those at supermarkets, discount retail chains, department stores, drugstores, and specialty retail stores like Best Buy. But BJ’s expanded their strategy a little more.
Aside from this, customers who do not want to pay for a membership fee and would just want to buy the same goods can buy them from supermarkets, but with a higher value. 3. Competitive force of supplier bargaining power A high competitive force of supplier bargaining power can be observed in the North American wholesale club industry. The said wholesale clubs partner with private-labeled brands in order to offer great deals to their customers. Wholesale clubs are able to get the products at a cheaper price; however, the suppliers make sure that competition between brands/products offered in the wholesale club is not high.
For Urban Outfitters, a trendy counterculture image for the most part, attracts a younger generation. It would not be profitable for these big retailers if they create and sell trendy items because they would have to spend more on advertising to those select groups. That is why these retailers buy merchandise in big bulks at a lower price to offer a low price to their customers. Trendy items tend to be limited and not bought in bulk; hence they attract a higher retail price. QUESTION 2 Could the big box stores sell merchandise identical to
Bargaining power : Customers have low bargaining power since they typically can't bargain for the price of their coffee. Customers also have more options due to the large variety of products offered by number of competitors Switching cost : Based upon the low switching cost, buyers are extremely powerful in this situation. There are several coffee shops/cafes in our area, all offering similar products to customers. Discount reusable thermos and/or mug : By giving a discount to those who bring in their reusable thermos and/or mug into the store (aim to be as eco-friendly as possible) Complimentary products and services: These range from merchandise sold at our cafe to different types of good that are offered • Mugs/thermos with our logo • Paper Cups • Coffee beans/Coffee grounds • Sugar • Cream Loyalty program : The café rewards customers based on their spending.This is aimed at attracting and maintaining customers at Broadway Cafe. Through this program we will develop a competitive advantage by implementing an IT solution specializing in customer relationship management as well as other databases and interfaces that ultimately increase efficiencies, while optimizing operations Loyalty programs reduce
Consumer’s are responsible for their selection in foods and if they chose to consue products that give no nutritional information that is on them. Zinczenko argues that lack of information given to the consumers about the food they are consuming is grounds to file lawsuits against the fast food vendors. Though there is truth to Mr. Zinczenko’s arguments, I disagree, with placing the blame on the fast food supplier’s. Consumer are responsible for . As far as healthier affordable alternatives, you pass just as many Subways, Jimmy Johns or Panera’s as you would a McDonalds.