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Sears and Wal-Mart

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Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image?

One of the main reasons why Wal-Mart or even Sears cannot manage to effectively come up with a trendy counterculture image is that, for instance, Wal-Mart operation or strategy is of ensuring that they have high volume of goods and low profit margin. According to Rugman, A., the only clever ways to manage using such a strategy successfully is by basically doing mass production or alternatively has a company doing you the production in large volumes and you buy them in bulk .By so doing the whole aspect of economies of scale comes in handy for wal mat. This kind of strategy makes it very difficult for a company to come up with trendy or counterculture products. Trendy counterculture is in normally characterized with uniquely designed or at times customized products that are in most cases very different from what the norm or convention in society is. And while Sears prices are very high the company still sell products that are produced in mass with the hope that most people of the general public will find their products appealing .For sears to attempt to enter or even cut a niche market in attempt to compete with a retailer such as Urban Outfitters would actually be such a big financial problem for Sears.

Alternatively, another reason to why sears or wal-mart can’t manage to come up with a trendy counterculture is that they are pretty much known to their customers as a warehouse and they are well known to target customers buying in bulk .By targeting customers buying in bulk they are able to keep their prices low but still benefit due to economies of scale (Thomsett, M.2007). For them to attempt to sell more trendy products and still make profit will be very difficult. For them to start selling more sophisticated and trendy products may not be in any way cost effective. Trendy outfits are normally  very expensive .They know their market and their clientele so attempting to do will be like experimenting and the results would impact negatively on the business.

 Sears, in my opinion is not as trendy as urban outfitters. After all not everyone intends or can afford to buy trendy products because of the high prices that those kind of products come with .It’s good for each and everyone to at least something that they can afford while giving good value for their money.

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Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer.

Big box stores can actually try selling products that are identical to Urban Outfitters but the only problem is that they can’t sell the exact merchandise like urban outfitters. To start with, some urban outfitters merchandise is customized for private labels who instruct them to come up with merchandise which they exclusively sell in their various outlets .With this kind of arrangements, most of their clients who request for the production of specific design would not want any other group selling products or merchandise similar to theirs and hence conflicts are likely to ensue. Another thing is that urban outfitters normally sell branded products with edgy labels and again they are normally very selective in as far as where they are selling their products in concerned. It’s very likely that they would not want o do business with companies like Wal-mart.

Identify at least three reasons why exclusivity is valuable.

Exclusivity is valuable in many ways first of all it helps a company to gain a bigger market share. According to Keuleneer, L. and Verhoog, W, a company that embraces exclusivity after sometime always cuts itself a niche market and they are normally assured of those clients. Secondly, it helps to make a companies products’ look distinct and different from the rest .Last but not least, once a company has products or goods that are distinctive and unique from the rest, the company becomes very competitive and it also acts as an added advantage to the company in the market.

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