Key Retail Strategies- How Large and Small Retailers Can Leverage Common Approaches for Success

Key Retail Strategies- How Large and Small Retailers Can Leverage Common Approaches for Success

A typical retail approach for small businesses is the desire to understand industry trends. Understanding industry trends will culminate in understanding customer needs. A business that understands customer needs gains a competitive edge in the market. Whenever large and small businesses lack a product a customer needs, they always express the desire to understand it. Most businesses promise to stock and deliver.

Another common growth strategy for small businesses is market penetration. It is arguably one of the most critical strategies to bolster long-term success (Goldstein, 2020). For instance, small businesses reduce prices relative to rival businesses. Reduced prices attract more customers, translating into more sales. Large companies like Walmart also apply price leadership strategies to gain a competitive edge. Also, fostering complementary partnerships is common among small businesses. However, partner businesses should not directly compete with the current business. Partners offer one business audience to their customers. Partnerships are equally practiced among large businesses.

Customers for Large and Small Businesses

Small and large businesses do not compete for the same customer. Essentially, small businesses tend to narrow down their target customers to a particular demographic (Huberts, 2012). For instance, a restaurant outside college premises often targets college students. Such a restaurant will not market its offers to the general public. On the other hand, large businesses cast their net wider, hoping to get customers from diverse demographics.

Market Dominance Strategy

The most effective way to establish market dominance is by addressing customer needs. The pursuit of fulfilling customer needs aligns all departmental lines with the goal of the business (Goldstein, 2020). For instance, one of the challenges facing Walmart’s customers is the poor shopping experience. If the business incorporates online and physical shopping models, the shopping experience will improve.

Recommendations

Large and small businesses need not overlook current customers. Most businesses err by ignoring current customers as they pursue new ones. While creating new customers is desirable, a business should not ignore current ones. A good way to do this is by creating an email list that keeps in touch with customers.

References

Goldstein, J. (2020, July 20). Council Post: Five Effective Strategies for Growing Your Retail Business.Forbes. https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2020/07/20/five-effective-strategies-for-growing-your-retail-business/?sh=2d458caa61b8

Huberts, G. J. (2012). Differences in management control systems between large and small organizations: A configurational approach (Master’s thesis, University of Twente).

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Visit a large retailer and a small retailer in your area. Post your answers to the following:
What common retail approaches would a company typically incorporate into its business or marketing strategy? Do these approaches work for large and small retailers?

Key Retail Strategies- How Large and Small Retailers Can Leverage Common Approaches for Success

Do you think large and small retailers compete for the same customer? Why or why not?

When attempting to dominate a market, is it more important for a company to identify consumer needs or to focus on products and services? Why?

What (if any) aspects of retailing are important to you? Do you have different expectations for large and small retailers?