Archives tagged: retail
Therefore, it is important to design a sales incentive structure that puts heavy emphasis on company profit, if that is indeed what your company seeks. Your company probably does. Shifting a company from a revenue or volume sales mindset to a profit mindset can take a good deal of time and effort, but it is an important shift, and one that shows real results.
More
High barriers to entry must be keeping competitors from providing alternatives to off-patent generic drugs. What could be the source of these barriers to entry?
It isn’t the lack of know how. Many firms are able to produce chemicals, even specialized chemicals in the life sciences. And, that is what a drug is: it is a chemical. As observed in animal health care, agricultural chemistry and many other specialty chemical companies: competition keeps prices relatively low. Yet, in human life sciences, there is insufficient competition.
Both Williams and Mason are frank about past mistakes. They grew too quickly. They didn’t respond appropriately to criticism. Accounting was a mess. The business model required too much labor in place of operational efficiency and scalable systems. But both are optimistic about the core problem that the company is trying to solve: e-commerce for small and local businesses.
More Without a strong understanding of these customers, as well as the effort to continuously reevaluate this understanding, companies will see their share slip away to better positioned competition. Pricing requires just as much strategy as product; the right product at the wrong price is no longer the right product.
More Disputing the economic turbulence over the last decade, the BrandZ ratings show that most brand categories increased in value. Leaders were fast food and technology. Seven categories doubled their values—fast food, technology, beer, apparel, telecom, soft drink and retail.
More Alvarez says that if you have two or three mall anchors of tenants driving traffic, this affects the entire mall. This creates a domino effect that reached down into the community through the lowering of tax base. “One major trend that Retail Revolution (the book) points out is that retailers will reduce store count and also reduce the size of those locations as online commerce begins to satisfy more and more demand….”
More Value-based pricing talks about pricing based on whether a product provides more or less perceived value with respect to the next best alternative. In the case of professional services however there is a slight difference — since there is the “human touch” involved we can’t be sure whether the next best alternative is a true alternative at all.
More Cost-plus pricers believe in understanding the cost of making a product and then adding a profit margin on top of the cost to arrive at the price of the product. Value-based pricers on the other hand are not keen at looking at cost or a target mark-up. Instead they focus on realizing the value that the product brings to the customer and then pricing it according to the value.
More The millennials are the first generation to be born with computers in virtually every household. They buy online and they can compare price and quality of shopping goods online as well. These factors carry enormous implications for retailers in shopping malls, according to Lal and Alvarez.
More Teixeira describes “decoupling” as a second wave of Internet disruption. This new phenomenon “threatens not only electronics and telecom businesses, but also industries as diverse as banking services and cosmetics.”
More