Business Description ABC1 Retail is a small family-owned retail store in Los Angeles, California. It is a stand-alone store without any other branches. Its key products include grocery items (fresh meat, frozen foods, dry grocery), consumables (baby products, toiletries, health and beauty products), pet supplies (pet food, cages, mats, dog house, etc.), school and office supplies, over-the-counter medicine products, and hardware and paint. It is open seven days a week from 8 am to 9pm. During summer and Holiday Season, the store remains open as late as 12 midnight. It has been serving the Orange County for more than fifteen years. The primary target markets of the ABC1 Retail are those who prefer buying in bulk. Most of the products sold there are packed in large quantities. Nevertheless, unlike in Wal-Mart and other large discount stores, customers of ABC1 Retail do not need to endure long waiting lines. With relatively fewer shoppers and a good system, the store is able to serve its customers much faster than the larger retailers and discount stores. Local customers know the store as the most convenient place to go for grocery shopping. Its pet supply product line is also quite popular among local customers. The store is known for having an impressive collection of pet supply products. With hundred thousand tourists coming yearly to enjoy the beaches in the area, the store has been fairly popular for locals and visitors alike. For many years, ABC1 Retail has performed very well financially.
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Its inventory turn-around time was optimized. It needed to constantly fill-up its racks because products were quickly sold. However, when large supermarkets and discount stores came into the area, sales started plummeting. Whereas sales were still able to sustain the store’s operation, profit had been stagnant. During the recent economic crisis, the sales plummeted at even greater levels. Even if the store did not really went bankrupt, the owners are now worried that if another crisis or any other business challenge come in, the business will no longer be able to survive. Hence, the company needs to analyze its business and be strategic about its next business steps.
SWOT Analysis One of the most popular tools for strategic management is the SWOT Analysis. ABC1 Retail has its strengths, weaknesses, opportunities, and threats that it needs to address in order to remain competitive amidst threats of competition. The table below shows the summary of ABC1 Retail’s SWOT. Strength One important strength of ABC1 Retail is its good reputation in the local market. The store is popular among local shoppers as a go-to store, especially because of its long operating hours and wide product selection. In operating for 15 years in the same location, the store has been one of the most known establishments in the area. The store enjoys strong recall among local shoppers as most of them know the store and where it is located. Its strategic location also provides the store with a steady flow of walk-in shoppers, especially the tourists. As an icon in the area and having strong reputation, ABC1 Retail can also expect good word-of-mouth and customer loyalty. The popularity of ABC1 Retail could also be attributed to its innovative shopping system. …show more content…
Even in peak season, the customers do not need to endure long waiting lines. The store implements a self-shopping system through which the customers scan their items and pay through credit card in the same station or through cash in another station. The shoppers are encouraged to carry their own shopping bags so packing their items tend to be easier and they can do it on their own. Hence, only the shoppers who need help in packing their items have to go to the traditional paying lines. This type of service is particularly popular among tourists who shop for a few items and has little time for shopping. This innovative shopping system serves as an important strategy that the store can capitalize from. Lastly, ABC1 Retail is also known for having a large collection of product selections. The store has a large inventory of products. The shoppers are assured that the store has most of the major items across its wide product lines. Moreover, for every item, shoppers get to choose from at least three brands. This is also
Its inventory turn-around time was optimized. It needed to constantly fill-up its racks because products were quickly sold. However, when large supermarkets and discount stores came into the area, sales started plummeting. Whereas sales were still able to sustain the store’s operation, profit had been stagnant. During the recent economic crisis, the sales plummeted at even greater levels. Even if the store did not really went bankrupt, the owners are now worried that if another crisis or any other business challenge come in, the business will no longer be able to survive. Hence, the company needs to analyze its business and be strategic about its next business steps.
SWOT Analysis One of the most popular tools for strategic management is the SWOT Analysis. ABC1 Retail has its strengths, weaknesses, opportunities, and threats that it needs to address in order to remain competitive amidst threats of competition. The table below shows the summary of ABC1 Retail’s SWOT. Strength One important strength of ABC1 Retail is its good reputation in the local market. The store is popular among local shoppers as a go-to store, especially because of its long operating hours and wide product selection. In operating for 15 years in the same location, the store has been one of the most known establishments in the area. The store enjoys strong recall among local shoppers as most of them know the store and where it is located. Its strategic location also provides the store with a steady flow of walk-in shoppers, especially the tourists. As an icon in the area and having strong reputation, ABC1 Retail can also expect good word-of-mouth and customer loyalty. The popularity of ABC1 Retail could also be attributed to its innovative shopping system. …show more content…
Even in peak season, the customers do not need to endure long waiting lines. The store implements a self-shopping system through which the customers scan their items and pay through credit card in the same station or through cash in another station. The shoppers are encouraged to carry their own shopping bags so packing their items tend to be easier and they can do it on their own. Hence, only the shoppers who need help in packing their items have to go to the traditional paying lines. This type of service is particularly popular among tourists who shop for a few items and has little time for shopping. This innovative shopping system serves as an important strategy that the store can capitalize from. Lastly, ABC1 Retail is also known for having a large collection of product selections. The store has a large inventory of products. The shoppers are assured that the store has most of the major items across its wide product lines. Moreover, for every item, shoppers get to choose from at least three brands. This is also