Final answer:
Retailers need to make strategic decisions on targeting specific customer segments, choosing a retail format, and establishing competitive differentiation, all while considering the implications of technology and globalization on market competition.
Step-by-step explanation:
Retailers face several strategic choices regarding their target customer, the retail format, and their competitive differentiation. Selecting a target customer involves identifying a specific segment of the market that the retailer will serve, often based on demographic, psychographic, or purchasing behavior criteria. The retail format choice could include online retailing, brick-and-mortar stores, or a combination thereof, also known as omnichannel retailing.
Competitive differentiation can stem from various elements such as price, product quality, customer service, or the shopping experience. In a world of advancing technology and increasing globalization, retailers also need to consider the broader market structure and competition arising from 'business-to-business' platforms and international entities that influence their competitive environment. Effective differentiation in a monopolistically competitive market could involve product variations, enhanced customer experiences, and other non-price factors to attract and retain customers.