Price Competition Between Watsons and Other Retailer in Singapore
Retail stores in most area around world have competitors close enough to affect their pricing, product availability and other operations. In all countries, the main competition is domestic, not foreign. However, these competitions could limit the growth opportunities and reduce profitability. The retailers operate in highly competitive discount retail merchandise sector. From there, the price war happens. Watsons Personal Care stores are one of the main retailer chains in Singapore and it is fighting in price war with its competitors. In this assignment, I will analyse the problem and the conditions of the firm using suitable models and recommend on how to improve and overcome the current problems.
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As the trend of the world, more and more choices are there for customers to decide what to purchase. Many factors influence these shopping decisions including price, in-store promotion, store ambience and cleanliness, level of service, value, logistics and overall retail experience. Watsons which sell health, beauty and lifestyle products have so many competitors. Among them, Guardian and Unity are the main competitors locally in Singapore. These two shops always set their stores near Watsons and sell the same products. However, the market share of Unity compared to Watsons is very small. Guardian used to have larger market share when Watsons started its operation in Singapore till recent years. Watsons took over the first place from Guardian in market from 2013 onwards and it has the largest