Business Description ABC1 Retail is a small family-owned retail store in Los Angeles, California. It is a stand-alone store without any other branches. Its key products include grocery items (fresh meat, frozen foods, dry grocery), consumables (baby products, toiletries, health and beauty products), pet supplies (pet food, cages, mats, dog house, etc.), school and office supplies, over-the-counter medicine products, and hardware and paint. It is open seven days a week from 8 am to 9pm. During summer and Holiday Season, the store remains open as late as 12 midnight. It has been serving the Orange County for more than fifteen years. The primary target markets of the ABC1 Retail are those who prefer buying in bulk. Most of the products sold
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Its inventory turn-around time was optimized. It needed to constantly fill-up its racks because products were quickly sold. However, when large supermarkets and discount stores came into the area, sales started plummeting. Whereas sales were still able to sustain the store’s operation, profit had been stagnant. During the recent economic crisis, the sales plummeted at even greater levels. Even if the store did not really went bankrupt, the owners are now worried that if another crisis or any other business challenge come in, the business will no longer be able to survive. Hence, the company needs to analyze its business and be strategic about its next business steps.
SWOT Analysis One of the most popular tools for strategic management is the SWOT Analysis. ABC1 Retail has its strengths, weaknesses, opportunities, and threats that it needs to address in order to remain competitive amidst threats of competition. The table below shows the summary of ABC1 Retail’s SWOT. …show more content…
Even in peak season, the customers do not need to endure long waiting lines. The store implements a self-shopping system through which the customers scan their items and pay through credit card in the same station or through cash in another station. The shoppers are encouraged to carry their own shopping bags so packing their items tend to be easier and they can do it on their own. Hence, only the shoppers who need help in packing their items have to go to the traditional paying lines. This type of service is particularly popular among tourists who shop for a few items and has little time for shopping. This innovative shopping system serves as an important strategy that the store can capitalize
Its inventory turn-around time was optimized. It needed to constantly fill-up its racks because products were quickly sold. However, when large supermarkets and discount stores came into the area, sales started plummeting. Whereas sales were still able to sustain the store’s operation, profit had been stagnant. During the recent economic crisis, the sales plummeted at even greater levels. Even if the store did not really went bankrupt, the owners are now worried that if another crisis or any other business challenge come in, the business will no longer be able to survive. Hence, the company needs to analyze its business and be strategic about its next business steps.
SWOT Analysis One of the most popular tools for strategic management is the SWOT Analysis. ABC1 Retail has its strengths, weaknesses, opportunities, and threats that it needs to address in order to remain competitive amidst threats of competition. The table below shows the summary of ABC1 Retail’s SWOT. …show more content…
Even in peak season, the customers do not need to endure long waiting lines. The store implements a self-shopping system through which the customers scan their items and pay through credit card in the same station or through cash in another station. The shoppers are encouraged to carry their own shopping bags so packing their items tend to be easier and they can do it on their own. Hence, only the shoppers who need help in packing their items have to go to the traditional paying lines. This type of service is particularly popular among tourists who shop for a few items and has little time for shopping. This innovative shopping system serves as an important strategy that the store can capitalize