Final answer:
Traditional retailers can compete with online retailers by increasing their market share through unique value propositions, personalized services, immediate product availability, engaging shopping experiences, or an omnichannel approach.
Step-by-step explanation:
A way that traditional retailers can compete with online retailers is to find methods to increase their market share, which usually involves creating unique value propositions that set them apart. To understand why this is crucial, one should consider giants like Amazon, which have leveraged their production model and cost structure, achieving economies of scale that allow them to offer lower prices and convenient services, such as prompt delivery. This undercuts many traditional competitors' prices, making it a challenge for them to compete on cost alone.
Instead, traditional retailers might focus on areas where they have advantages over online stores. This can include providing personalized service, ensuring immediate product availability with no shipping wait times, creating an engaging shopping experience, or developing an omnichannel strategy that combines in-store and online presence. They can also consider leveraging the franchise model, which offers training, supply chain support, and reduced startup costs through a recognized brand.