Activity: Competitors (300~350 words)
Competition is tough. It comes from all directions. It comes in all shapes & sizes. And sometimes it comes out of… nowhere! So, what’s to be done?
Here’s your assignment (Discussion Board # 2): I’m going to ask a rather generic question about competitors, but one which will require a thorough understanding of chapter 4… with attention paid to the “terms” on pg 169.
DO NOT FOCUS ON YOUR PERSONAL OPINIONS, or your personal experiences.
You have 3 choices here to examine: either TJMaxx, or Trader Joe’s, or Chipotle Mexican Grill. Choose one (1).
These retailers are not direct competitors…… since each competes in a different competitive space (although it would not be unusual for a consumer to shop at all three). However, we can learn a lot from them… because they are each, in many ways, best in class! They each appeal to different demographics, and psychographics.
Let’s study their leaders... the CEOs who design the strategies with which they compete with some tough competitors.
So, here’s the Question: If you’re a retail CEO, what is the best way for you to compete? and think about the 4 competitive (economic) structures as you compose your answer. So, put aside your personal opinions/biases, open your mind, and learn from retailers who are among the best! Be careful that you discuss this in the context of the nature of competition. Be sure to discuss at least 2 textbook ideas, underlined.
……… If it is not apparent you’ve actually read your chosen article, NO CREDIT.
(A very credible business publication, Fortune magazine is also available through the Troy library.)
1) TJMaxx (small niche retailer): Many of you are familiar with this retailer, but you might be amazed at what you find here. It examines the world of very competitive discount retailing, through the eyes of some masters at work. And again… be careful that you discuss this in the context of the nature of competition. Be sure to discuss at least 2 textbook ideas, underlined. You’ll find this article as a cover story of Fortune magazine, August 11, 2014. Author: Beth Kowitt.
2) Trader Joe’s (small niche grocery store): This was also a cover story in Fortune magazine (Sept 6, 2010). Many of you won’t be familiar with this retailer, because it has relatively few stores throughout the country, mostly on the two coasts. But you’ll be amazed at how this “secretive” retailer competes! And I’ll just bet you’ll wish there was one in your town!!!
3) Chipotle Mexican Grill (niche restaurant in a HUGE market): This, too, was a cover story in Fortunemagazine (Sept 26, 2011). Ever had any of their fabulous burritos???!!! Here’s a quote from the CEO… “Chipotle succeeds not because of the burritos… but because of our system.” Or what about this? Chipotle’s relative value per restaurant is more than 3x that of McDonald’s. Are you kidding me????? (By the way, MCD owned a big chunk of CMG a few years ago.)
Be careful that you focus on competition in your post, since that’s the week’s topic. And be careful that it’s crystal clear to me that you actually read the material about the retailer you chose!