Retail Marketing
Chapter 3Why is it necessary for a small retailer to develop a thorough, well- integrated strategy? What could happen if the firm doesn’t develop such a strategy?By developing a thorough strategy, including mission statements, ownership, style, and what goods/ services to produce create clear, concise goals, the business is setting itself up for success. Additionally, when a strategy is in place other companies know what they are up against competitively. Having such a thorough strategy will help to keep the business on tract as to what they want to be accomplished in the years to come. The strategy will also make way for the way the retailer wants business to be conducted throughout the years. Overall, with a thorough, well – integrated strategy the business is in a clear position to hopefully succeed in the months to come which may be the most difficult as a small retailer. If a business does not create a thorough strategy, the business would not have a clear idea of where they want to go in the next few years. Without a clear idea, the business may fail without a clear plan and strategy in place. In addition, the business may go off track of ways to accomplish goals without a thorough strategy. 3. What are the pros & cons of starting a new hair salon vs buying an existing one? a. Starting a new hair salon will create such a sense of accomplishment as you are the one creating the new business. You are able to start over and run your own salon without others telling you what to do. You are able to build your own business plan and strategy on how to run said hair salon. You can make your own hours. Additionally, you are able to build the salon anywhere you’d like, in your home or in someone else’s building.
b. With all the pros, there are always cons to every situation. A con is having full responsibility for any and all problems that arise. You are the one to figure out where to build the hair salon, whether it be at home or lease/rent/buy space from an already built building. You are responsible for marketing to new customers, and it may take time to gain a large customer base. The time you have will revolve around running the business as you are the one opening the hair salon. When starting your hair salon, you need the startup costs and possible investors that are expecting you to do well, even when you begin. c. Buying an existing hair salon may be easier than starting a new hair salon since the business is already established. The startup costs may be less compared to starting a brand new salon as the new salon may show fewer risk. In some cases, when you buy an existing hair salon or business there is already a market to sell your product or service to. When buying an existing hair salon, the business owner needs to be aware that there may be debts to be incurred from previous owners.