Segments and industries where a strong competitive

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segments and industries where a strong competitive advantage exists for the company. Example: Porsche in cars and Gillette in blades. Penetration pricing: price is set artificially low to gain market share quickly. This is done when a new product is being launched. It is understood that prices will be raised once the promotion period is over and market share objectives are achieved. Example: Mobile phone rates in India; housing loans etc. On the supply side:- Real estate costs and rentals highly inflationary - Real estate costs & rentals are subject to high inflation. In our country, real estate costs keep on increasing. This leads to high cost of rentals for suppliers as cost of warehouse becomes high. Hence increasing the cost of goods. High COGS due to low bargaining power with suppliers due to limited scale - The bargaining power of suppliers is one among the forces that shape the competitive landscape of an industry and helps determine the attractiveness of an industry. So, the cost of goods sold in Indian retail landscape becomes high due to low bargaining power of suppliers due to limited scale.
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NEW DELHI INSTITUTE OF MANAGEMENT 60 & 50 (B & C), Tughlakabad Institutional Area, New Delhi-110062 End Term Examination | March/April, 2020 Batch 2019-21 | Semester-II Date: 01/04/2020 | 10:00AM – 1:00PM Subject: Retail Marketing (MM-07) (Major-1) High cost supply chain due to poor connectivity, out of stocks, excess inventory - Supply chain and logistics cost are also high for Indian retailers. In India, suppliers believe in owning their own logistics and transportation. These own fleet of trucks will transport only the products of 1 supplier which leads to low optimal use of resources which therefore leads to higher costs. If this transportation is handled by other logistics company, it will transport the goods of many suppliers which will lead to lower supply chain costs. Real estate is also, rapid urbanisation in the country is pushing the growth of real estate. More than 70 per cent of India's GDP will be contributed by the urban areas by 2020. So these are some of the factors leading to the downsizing of trade. Q.No.4. How should Indian retailers aim for fundamental transformation, not incremental changes? Answer:- As the serious condition regularly develops, retailers face an endless procession of new difficulties. specific improvement is rarely again enough – organizations ought to on a very basic level plan their plans of action. The mail-request organizations were the primary to feel the tremors – the ascent of online players like, Amazon and Zalando had perpetually changed the guidelines of the commercial centre. Out of nowhere, indexes given like clockwork left clients cold. The Otto Group reacted by getting one of the primary organizations in Germany to thoroughly change its whole plan of action. Presently the ground under blocks and mortar retailers has gotten insecure also. Online players have driven the degree of rivalry to phenomenal levels. Therefore, retailers must ace an abundance of new difficulties – finding persuading multichannel arrangements, yet creating and actualizing inventive store ideas

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