There is potential to failure if the company purchases products that the customers don 't like or that they don 't want to buy. TJX Companies might end up losing money due to the higher expenses by buying additional merchandise in case the customers don 't buy the new inventory. Another disadvantage that comes along with this alternative strategy is that the company has to find ways on how to get the new merchandise transported to different stores. Depending on where the new main stores are located, for example overseas in Europe, this could lead to a greater amount of expenses because transportation is always combined with costs. The further away the main store is located and what kind of transportation is used, the more it would …show more content…
Currently, both competitors The Gap, Inc. and The Ross Stores offer similar products which makes it difficult for TJX Companies to keep its domination position within the U.S. in the future due to the market share with the competitors. Therefore, this can help the company to outperform its competitors because it is able to offer a greater variety of products due to the greater supply chain after making these contracts. In addition to that, this strategy can help TJX Companies to outperform the new players that enter into the retail industry because of its knowledge and its experience that the company gained since its existence. With a greater variety of products, customers will create a higher loyalty level with the company so it will be more difficult for the new players to take away the company 's target market. The fact that there is a higher chance that customers will keep being loyal also shows that TJX Companies is able to create a better store and brand recognition which will help the company in the