However, there may be significant costs to advertising and marketing campaigns meant to broadcast the niche qualities of the store. Offer new goods and services, Alter the balance between different sectors, Approach with new technological and managerial techniques, Augment opportunities. A new entrant could bring with it the following advantages. Advertising and Product DifferentiationFurniture stores that have a unique product or style may do well to open in a market with existing stores. In the long run the level of competition depends on the condition of entry. Family and neighborhood connections may have generations of customers returning to the same store. Furniture stores of any size that have been part of a community for many years may also pose a similar threat to a new store. National or international chains can take advantage of brand recognition and reputation to attract customers, making it difficult for new furniture stores to attract a clientele. Relationships Established by Existing CompaniesFurniture purchases are often large expenditures where families look for both exceptional quality and value. As an example, the largest furniture store in the world, IKEA, has the ability to leverage its size to lower manufacturing costs and provide furniture at low prices.
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