Question

What forces are driving changes in the retail industry? Are these driving forces likely to have favorable or unfavorable impact on competitive intensity and future industry profitability?

Answer 1

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The factors that are driving changes to the retail industry are:-

1. Emergence of major ecommerce companies and saturation in the market.

2. Increase of the use of mobile technology rather than physical shopping.

3. Marketing is still best when it is online based.

4. Integration of technology into business models.

5. Change in the generation of the shoppers with the passing time.

These forces have the ability to provide benefits to the customers in terms of its implementation and promote healthy competition amongst the different companies in the market. Retail is still just as strong and relevant as it was before. This is due to the fact that the industry is highly adaptable and susceptible to changes and conform to changes really quickly. This would only mean that the companies can essentially create their business models to incorporate as many features of the changes as they possibly can and create healthy competition in the market where there is the element of growth and sustainability for the future aspect of the businesses conducted in this industry.

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