Abstract
The study aims to increase our knowledge of how a retailer can survive in recession economy by changing its competitive strategy. In particular, the study is to identify those strategies that can help retailers to maintain successful performance despite turbulence in the operational environment. A case study approach is employed to explore a whole picture of a successful retailer’s actions and strategy to scope with down turn economy. Results of the study show that retailers can maintain and improve their performance in times of crisis by adjusting their competitive strategies properly. We found that in recession period, retailers need to exercise a combination of competitive strategies including low cost focus and differentiation focus strategy. To be able to enhance low cost strategy, retailers need to have logic logistic center, to increase effectiveness of employees, and to reduce wastes from right-ordered for fresh food products, to strictly utilize first-in-first-out food product displaying methods. For focus strategy, firms need to pull unprofitable products from the shelves, and to focus on profit-driven product selection, to focus their promotion campaign on the most effective time and channel. In differentiation strategy, retailers need to be more selective for which products to offer, and to be more creative in their promotion program.
Highlights
In recession economy consumers feel insecure in their job and negotiate more about financial matters (Shama, 1978)
We found that in recession period, retailers need to exercise a combination of competitive strategies including low cost focus and differentiation focus strategy
The research question, as follow: “How do a food retailer utilize their competitive strategy to increase their performance in recession economy?” This paper proceeds with discussing competitive strategy, statement of propositions, followed by the methodology, describing case company, findings, and conclusions and recommendations
Summary
In recession economy consumers feel insecure in their job and negotiate more about financial matters (Shama, 1978) Consumers adapt their shopping behavior and habits, to be able to adjust to the changing economic conditions (Ang, 2001a, b; Ang et al, 2000; Zurawicki and Braidot, 2005). This causes insufficient consumer demand for products and services, results in fierce competition in the market place (Zehir and Savi, 2004). The research question, as follow: “How do a food retailer utilize their competitive strategy to increase their performance in recession economy?” This paper proceeds with discussing competitive strategy, statement of propositions, followed by the methodology, describing case company, findings, and conclusions and recommendations
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
