Question

1. Select a retail business from the list below. The business must sell products, not services.
   -   A camping supply store
   -   A candy business
   -   A high-end children's clothing store which only uses natural fibers
   -   Deli / sandwich shop
2. Describe the business and the product(s) you plan to sell.
3. Using Porter's Five Forces Model - analyze your business (use the Detroit metropolitan area as your local market).
   Provide an analysis on all 5 Porter's forces with respect to your business   
   a. Provide an analysis of each power and what it means relative to your business
   b. Explain how each "power" ranks for this business - high / med / low / etc.
4. Using Porter's 3 generic business strategies, choose a business focus
   a. Identify where your products /business align
   b. Describe why you would align that way?
5. Research CRM Capabilities
   a. List 3 capabilities / techniques that you will use for your business.
   b. Provide a description and comparison of each and why they would work for your business

Answer 1

1. A high end children's clothing store which uses only natural fibres.

The stores consists of different fancy children wears of different sizes.

2. The stores name is kid's trend

Kid's Trend consists of very nice material with no synthetics. This is comfy to wear and so fashionable. There are nice t shirts, hot pants, skirts, frocks, shirts, blazers, trousers, joggers, jeans, tops, shorts, jump suits and many more for kids.

There are two sections one is casual and the other is formal.

3. The Kid's Trend Store is open in the eastern market area of Detroit. The eastern market is very ancient market of Detroit so we have chosen that place to sell. It has high footfall.

a. Porter's five forces model

Threat of a new entrant: This store is going to be new in itself so we will be a threat to the market available. This is an advantage to enter late into the market cause the later we move the less risky is the business. So our store will have to face less of the risks in sale as we have already seen what are the requirements of the customers. Any pioneer has to invest a lot into this research.

b. This power is high

Bargaining power of the suppliers: The suppliers will provide us different sort of clothes which are non synthetic which is really a good point to sell. This can act as our Unique selling point. The suppliers can bargain on that basis but since we will open a large store and we wish to have a contract of buying from them there bargaining power will be very less.

b. This power is going to be medium

Bargaining power of the buyers: The buyers will not be able to bargain that much cause we are providing them with very nice stuff which is not avaialble easily in the market. We will assure them a gaurantee of the products.

b.This power can be medium cause it is difficult to control customers. We can only convince them through our marketing.

Threat of a substitute: There are many products similar to the Kid's trend store but we will have a good marketing campaign to show that what we are providing is really different. And we will offer good discounts and loyalty rewards to the customers.

b. This power can be high cause a trendy store will bind people.

Industry rivalry: There are many of the existing competitors who will try to put the business down but we will raise our scale and differentiate our costs and products which will keep it really different from the competitors. Also doing innovations in the design will help.

b. This power can be less cause there are many of the competitors who doesn't want to leave the market and their goodwill so it is a hard task and it requires a lot of research.

4. a.

Differentiation strategy will be followed in the store.

b. The reason is we would  like to be unique in selling inorder to provide high quality products with not so low cost as very low cost will make the product cheaper in quality. we need to be good at delivering quality and that quality will be as per the customers.

5a &b. we would use all the single mothers who are really talented in our workforce. This will help them provide employement too and would also work as a good medium to promote our product cause mothers know what a kid would like to wear.

We will also support these single mothers every month through our CRM activities and will conduct programs for kids.

We can also do CRM activities for the orphan kids to support them. In this way we can do best to the society.

We can also initate CRM activities for the kids who are special child. This will deifintely bring smile to the society and will create our good image infront of the society. This will relate the customers emotionally too.