Question

You are required to provide a thread in response to the weekly module reading assignment and provided questions. Each thread must be between 200 and 250 words in length and demonstrate course-related knowledge. In addition to the thread, you are required to reply to 2 other classmates’ threads. Each reply must be between 150-200 words in length. Thread: Answer both of the questions below thoroughly:

How is it possible for a privately owned grocery/food store to compete in an area surrounded by 4 major supermarkets within a ½ mile radius? In a similar vein, read the Video Case on Raleigh Bicycles on P. 326. How do they compete against the heavyweights (pun intended) in the business? A Rolex Oyster watch sells for about $900. Walmart sells a watch made in China for $12.95. They both keep exactly the same time. Rolex can sell as many of their watches that they care to produce. Walmart sells as many of their watches as they care to stock. Why, with that large price disparity is there room in the market for both?

Answer 1

Private grocery stores can compete with major supermarkets by offering unique products and services and providing a personalized shopping experience. Raleigh Bicycles competes with heavyweights through brand reputation, quality, and innovation. The market can accommodate both high-end brands like Rolex and affordable options like Walmart due to differences in target market and customer preferences.

Step-by-step explanation:

In order for a privately owned grocery/food store to compete in an area surrounded by 4 major supermarkets within a ½ mile radius, they can focus on offering unique products or services that the major supermarkets do not provide. By targeting a specific niche market or catering to a specific demographic, the privately owned store can differentiate itself from the competition. Additionally, the privately owned store can focus on creating a personalized and customer-centric shopping experience to build customer loyalty.

Similarly, Raleigh Bicycles competes against the heavyweights in the business by focusing on their brand reputation, quality, and innovation. They have established a strong brand image and reputation for producing high-quality bicycles. They also invest in research and development to continuously improve their products and stay ahead of the competition. Additionally, Raleigh Bicycles may target specific market segments or niches, such as urban commuters or avid cyclists, to differentiate themselves from the heavyweights.

The market can accommodate both a Rolex Oyster watch selling for about $900 and a watch made in China sold by Walmart for $12.95 due to differences in target market, perceived value, and brand reputation. While Rolex targets a luxury market segment, Walmart targets a more price-conscious market segment. The customers who are willing to spend $900 on a Rolex Oyster value the brand, prestige, and craftsmanship associated with Rolex. On the other hand, customers who opt for the watch made in China from Walmart prioritize affordability and may not place the same value on the brand or craftsmanship.