Share
Explore BrainMass

mass retail business

Please help with the following questions:

1.Analyze how competitive advantages can be built internationally with a particular focus on Asia. ( for max retail business)

2.What are the challenges that mass retailers confront when they internationalize?

3.What are the key characteristics that are important for the success of mass retail in a particular country?

4.Discuss the applicability of the hypermarket business model in Asia.

Solution Preview

Analyzing mass retail business

1.Analyze how competitive advantages can be built internationally with a particular focus on Asia. ( for max retail business)
Competitive advantages can be built internationally in mass retail business through the mechanism of high bargaining power mass retailing enjoys with suppliers. In addition, mass retailers have low overhead cots and low unit costs. This advantage translates into high value for the customer by way of high assortment of products, low prices and newness of products. Essentially competitive advantage is built when the mass retailer purchases in large volume and sell at low prices, obtaining return from relatively low net margins through high inventory turnover. This cost advantage is translated into low consumer prices that lead to even larger volumes of sales. The prime reason for the growth of mass retailing is the low prices of high quality products available at retail stores. The low cost model is extended to low cost location and low cost service but the most important part of mass retailing is the low cost logistics.
How is this achieved? The mass retailer develops a high degree of collaboration with suppliers, it uses the best models to replenish its inventory. Mass retailers join together their logistics with buying decision, moreover, they use the internet to co-ordinate with their supply partners.
Mass retailers optimize their customer channel to deliver when the customer wants and they work with stores to prioritize their in-stock positions. The mass retailers accelerate their internal processes and continually improve operations to get profitable. They carefully measure replenishment cycle times and build logistics capabilities by product category.

2.What are the challenges that mass retailers confront ...

Solution Summary

This explanation provides you a comprehensive argument relating to mass retail business

$2.19