Discount Stores Essay, Research Paper
The general issue that this article touches upon is the economic growth of the ‘discounter’ store called Target. Economic growth occurs because after deflating, or subtracting the inflation from the profit, the real income is higher than that of the year before. Target offers an original blend of products in the latest fashion and low-rent prices. It is called the “Kmart for yuppies”(Naughton). Initially, the regally pronounced “Tar-jaay” opened its services in the midwestern region, however, after the huge success, it is now planning to enter the Northeast market. There it will have to compete against another ‘discounter’ store, Wal-Mart. Target has launched a new ad campaign to create an image for itself as the ‘icon of affordable chic”(Naughton). To finance the campaign, the store is using part of the great profits it has made in the Midwest. Target’s profits have nearly doubled in the last four years and now account for three quarters of Dayton’s bottom line, which it its parent company. However, the analysts are warning that Target could miss the mark trying to cater to the fickle fashion sense of the Americans.
At the end of my junior year, Mr. Blanc has introduced economics by playing a game. The Students were to choose a corporation out of 40 choices or so, among which one could find such companies as Disney, etc. The students’ choice was to be based on the assumption of which of the latter would experience greatest development and thus, return the greatest profits. The option offering the largest returns turned out to be Target. One of the reasons why the store is experiencing such excellent results is because of the product it offers, which is referred to in the article as the “unconventional blend of high-style offerings and low-rent prices”. This means that the products that the store carries are satisfying the consumers’ demand for both quality and cost. They receive (most of the time) the upscale product that is currently in fashion for a very reasonable price as in comparison to their wages. The consumer does not have to compromise between getting a ’slightly imperfect’ product for an accessible cost, or on the other side of the extreme, the consumer doesn’t have to acknowledge that he doesn’t need the item (and I am referring to the word ‘need’ in the sense that we don’t need anything at all, the consumer might ‘need’ the item to ease his everyday existence, e.g. toaster; however he doesn’t need it). Looking at the supply side of this article, if Target is making such vast profits, the consumer response must be satisfyingly large enough to allow the prices to remain at level appealing to both sides of the market. Therefore, in this relationship between the customer and the supplier we see that equilibrium has been reached, a point at which the quantity supplied is equal to the quantity demanded. At the set price level, both the supplier and consumer are happy, because the cost of product suites the latter amount of disposable income, income after the required taxes and such are subtracted from. From the suppliers’ point of view, the price is adequate to cover the production costs as well as to allow for reasonable, and in Target’s case, lucrative profits. (Please refer to Graph 1). The mentioned ad campaign is obviously meant to keep the equilibrium by influencing consumers’ preferences. Nevertheless, I do agree with the skeptic views of critics warning Target about the massive ‘attack’ on new territories. Everybody knows that the West Coast is quite different from the West Coast when it comes to preferences. I would suggest an extensive study of preferences, as well as the background of the potential consumers. Things like consumer preference, wage rates, population are important to observe for they affect the demand curve on the Supply and Demand graph. It should be taken in to account that Wal-Mart is already well set in that region, therefore, the opportunity cost of taking the risk of competing with the strong Wal-Mart on one hand and the opportunity cost (the cost of the next best alternative) of expanding and improving the services offered here, in the Midwest.
Reference:
Naughton, Keith. October 11, 1999. Hitting the Bull’s-Eye
Другие работы по теме:
Fallacy Essay Research Paper At 130 in
Fallacy Essay, Research Paper At 1:30 in the morning you are driving down Walton Road when you pass the 7-11. You decide to stop in and treat yourself to a nice big slurpee. As you pull in
Hairdini Essay Research Paper Advertising
Hairdini Essay, Research Paper Advertising & Distribution Our product is the Hairdini magic styling wand, that is used for your hair to make French twists or buns or as they say ?fashionable hairstyles.? We found the product after looking in many stores and after finally giving up. Then when we had stopped looking we found the product in our home, our mother had bought it a year ago after seeing it on television.
Marketing Plan Essay Research Paper We live
Marketing Plan Essay, Research Paper We live in a world where consumers are demanding access to information and service anywhere, anytime, and from any device. For most people, Cell phones will be the devices, which provide them with their first access to the Internet. Time is the most precious commodity and convenience is everything.
Capitalisum Essay Research Paper We vote every
Capitalisum Essay, Research Paper We vote every time we purchase something. And some of the candidates are shittier and more deceptive than the slickest and sickest politicians (but just barely). The forces of capitalism control the world economy and therefore control the mostly powerless governments that we in a “democracy” elect.
Why We Go To Malls Essay Research
Paper There are a number of reasons why people shop at malls. For one thing, people malls extremely convenient. In addition malls provide shoppers with a great variety of stores and shopping opportunities. Finally, and perhaps most importantly, malls are great places for entertainment.
Layout For Job Benefits Essay Research Paper
As a Morgan Stores employee, you are entitled to certain benefits. The longer the period of time that you work for us, the more benefits you are eligible to receive as a valued employee. Listed below are the lengths of time, and corresponding benefits.
The Lowest Price Always Essay Research Paper
The Lowest Price. Always Over the past 20 years, the nature of the American retailing market has changed dramatically, going from Mom and Pop’s boutiques to mega retail stores like Wal-Mart. Especially in the last decade, Sam Walton’s discount stores have proliferated in almost every city across the United States and Canada.
The Gap Essay Research Paper The Gap
The Gap Essay, Research Paper The Gap Inc. When I first thought bout what company I would like to research, I look down and fixed the collar on my shirt. Then it dawned on me that since I love fashion, I could do
Risk Management Essay Research Paper The primary
Risk Management Essay, Research Paper The primary risk for lawsuits in my company revolve around trademark infringement, and unauthorized distribution of licensed product. The company is in litigation constantly. Typical scenarios that have resulted in lawsuits are as follows:
Grocery Wars Essay Research Paper The Grocery
Grocery Wars Essay, Research Paper The Grocery Store War Every person must buy groceries. In Brevard County, a consumer has three grocery stores where they can purchase food, Winn Dixie, Publix, and Albertson’s. Although they are all grocery stores and they all sell food, they differ greatly in customer service.
KMart History Essay Research Paper K Mart
K-Mart History Essay, Research Paper K Mart is the outgrowth of S.S. Kresge, founded in 1899. S.S. Kresge was a ?variety store? that featured low-priced merchandise for cash in low-budget, relatively small
WalMart Not A Villain Essay Research Paper
I live in Mentor, Ohio, a suburb about thirty-five miles east of Cleveland. It used to be all greenhouses, until a few decades ago when it began the process of commercialization, along with other neighboring cities. Big-name stores moved into town, slowly at first. After awhile, along came a shopping mall and stores such as K-Mart.
Biography Essay Research Paper Sam Walton is
Biography Essay, Research Paper Sam Walton is an American icon. When we think of discount stores, we think of Sam Walton. Poor boy makes good can describe Sam Walton. He came from a poor background, to become a successful businessman and the richest man in the United States. Sam Walton ruled the discount retail market.
Kmart Corporation Essay Research Paper KMART CORPORATIONFACTSKmart
Kmart Corporation Essay, Research Paper KMART CORPORATION FACTS- Kmart was formed in the late 1950’s to challenge new forms of discount stores. They are a descendant of an organization Sebastian S. Kresge. The average Kmart store is around 100,000 square feet. In 1987 Kmart was the largest discount retailer in the United States.
Discount Purchasing Essay Research Paper Discount PurchasingLike
Discount Purchasing Essay, Research Paper Discount Purchasing Like any other word or phrase there are different meanings and sayings. With the word discount there are several meanings for just one word. So to start our research project we are going to provide you with a definition describing the different meanings of the word discount.
Italy Essay Research Paper The Internet Tourist
Italy Essay, Research Paper The Internet Tourist Guide Of Italy – A city by city guide to Italy. Also has maps and transportation information. TravelEurope’s Italy Travel Guide – More than 4000 web pages about Italy including art,
Customer Profiles Essay Research Paper Author Soranno
Customer Profiles Essay, Research Paper Author: Soranno, Valerie – Discount Store News Title: Customer profiles are key to loyalty, February 8, 1999 The author makes a very good point in that understanding the drivers behind customer loyalty can be an important step in increasing earnings and profits.
Geographical Information System Essay Research Paper GIS
Geographical Information System Essay, Research Paper GIS Geographical Information System originated in the 1960s. During the early days of the technology the use was limited to a small group of practicioners. It is a information technology which analizes, stores, and displays both spatial and non-spatial data.
Kmart Essay Research Paper Kmart StoresKmart
Kmart Essay, Research Paper K-mart Stores K-mart’s upper management is attempting to bring K-mart “upmarket” without losing the chain’s discount image. The goal is to change the store’s image from a no-frills discount store to a retailer of quality, brand-name merchandise offered in modern, attractive displays.
Walmart Essay Research Paper On July 2
Walmart Essay, Research Paper On July 2, 1962 Sam Walton opened the first Wal-Mart store in Rogers, Arkansas. At the time, the discount industry was fairy young and nobody wanted to take the risk and invest in the first Wal-Mart. However, Sam Walton was convinced that consumers would flock to a discount store with a wide variety of merchandise and friendly customer service. (1a) Therefore, Sam Walton invested about 95 percent of money needed to start the company and placed everything he owned on the line.
Discount Stores WalMart Vs Shopko Essay Research
Paper Competitive Advantages in Discount Stores When you walk into Wal-Mart the first that that hits you is a display of household items that are point of purchase items. There tends to be laundry detergent, Kleenex, and toilet paper. These items are sometimes on sale and are usually the ones that people forget to put on their list.
Big Stores Return To Mean Streets Essay
, Research Paper Big Stores Return to The Mean Streets The retailers are getting advantages from the government if they place their business in the inner cities; the government is offering them the store as incentive to them. The retailers have to go through a bureaucracy process to get a business in the downtown .
Production Manufacturing Essay Research Paper Case Study
Production Manufacturing Essay, Research Paper Case Study 9 – “The Production Process at Washburn Guitars” There are many small manufacturing facilities in and near my city and town. Some of them would include The Washington Post, Berreta USA, and The Department of the Treasury, Bureau of Engraving and Printing.
Japanese Education Reflecting Their Culture Essay Research
Paper Education in Japan, one will find various insights into Japanese culture. Japans approach to education reflects Japanese values.Modern Japan is quite an amazing place where people act proper and have great values. The Japanese people have a value system that can be reflected well by there educational system.
General George Meade Essay Research Paper General
General George Meade Essay, Research Paper General Meade Do you know who was the general for the Second Battle of Bull Run? Everyone knows what the Second Battle of Bull Run is, but who was the general? Some people even know that the north won that battle. Most people do not know that General George Meade defeated General Lee at that battle.
Cheap Decorating Essay Research Paper With today
Cheap Decorating Essay, Research Paper With today’s inflation how can anybody find the money to decorated their ugly boring living room? Well, I have the solution for you, decorate with little money. Just follow these three easy steps and you’ll be on your way to a beautiful room.
General Manager Essay Research Paper GENERAL MANAGERThe
General Manager Essay, Research Paper GENERAL MANAGER The career of my dreams is to be a general manager. The general manager is the person who sets polices and directs the operations of business and corporations. They only
IT Tech Essay Research Paper FullService Firms
IT Tech Essay, Research Paper Full-Service Firms Will Bring More Spice to Web-Trading War Investors who have invested online at discount web sites may drop their current service provider and go to a full service firm. Full service firms such as Merril Lynch, Salomon Smith Barney and Paine Webber have entered into the online web trading war.
ECommerce Essay Research Paper ECOMMERCEApril 10 2000
E-Commerce Essay, Research Paper E-COMMERCE April 10 2000 E-Commerce Electronic commerce has its ups and downs for consumers. On one hand, online shopping holds the potential for more convenience and broader selections. On the other, it has bred confusion over the legitimacy of electronic records.
Legalization Of Marijuana Essay Research Paper Legalization
Legalization Of Marijuana Essay, Research Paper Legalization of medical marijuana This act may be cited as the ? legalization of marijuana? Sec. 1 This bill will be for the well being of the pain stricken patients in our nation’s hospitals, a doctor that will decide if a patient is illegible to receive marijuana.