Modeling Retail Chain Expansion and Maturity †MyAssignmenthelp.com

Question: Discuss about the Modeling Retail Chain Expansion and Maturity. Answer: Introduction: The basic strategy of Walmart is based upon cost leadership. Cost leadership refers to the strategy wherein an organization emphasizes upon maintaining the lowest prices of its products in order to maintain competitive advantage over the rivals ("Walmart", 2017). Walmart emphasizes upon everyday low prices, which has been possible due to the economies of scale. The company enjoys cost efficiency by efficiently utilizing the online channels of distribution. More than three- fourth of the retail operations of walmart.com, comes from non- store inventory. Walmart is constantly involved in improving its products and prices. Walmarts dynamics and strategies involve offering its customers a wide range of products at the lowest possible prices. Cost leadership helps the company to gain competitive advantage over the others (Joseph Kuby, 2015). The dynamic pricing strategy of Amazon involves studying the behavior of the shoppers as well as the behavior of the competitors in order to determine the appropriate strategies. Dynamic pricing strategy refers to the strategy wherein the retailers change the prices of their products according to the change in demand and the prices of the competitors. Amazon does not always offer products at lowest prices ("Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs more", 2017). The company utilizes vast computer networks to monitor the prices of several items offered by the rivals. The company usually offers huge discounts on the products which are popular whereas, the company offers less popular products at higher prices than the competitors. The companys strategy involves convincing the customers that the company offers all the products at cheaper prices than the others however; in reality, the company does not offer cheapest prices. The company has a dynamic wa rehouse network, which ensures that the warehouses are located on the basis of delivery goals. The strategy of the company involves offering low prices and providing fast and free shipping facilities. The pricing strategies of Amazon have enabled the company to gain competitive advantage over the rivals. Ownership, management structure and staffing In order to ensure that a company runs successfully, it is essential for the organizations to have an effective organizational structure along with appropriate staffing. Netflix is currently an international internet streaming organization. However, the company wants to diversify its operations diversifying its product range. The organization aims at providing text books to its customers at a monthly subscription. In order to incorporate this idea, the organization has to reorganize its organizational structure accordingly. Netflix has been focusing upon its services rather than focusing upon a product ("Netflix : Overview", 2017). The company is highly dependent upon the Chief executive officer and owner of the company, Reed Hasting along with the members of the executive team. Netflix has become a well- known international brand and it is easier for the company to recruit qualified employees and retaining them. The company shall have to set up a separate organizational structure fo r managing the textbooks department of the organization. For this purpose, the organization shall have to appoint a divisional manager, who shall head the new department of the organization. The chief marketing officer shall be responsible for leading the marketing team in consultation with the divisional manager. The new idea of Netflix for textbooks shall involve appointment of a president and vice president, who shall be responsible for managing the diversified business of the organization. There shall be a separate accounts department that shall maintain the records related to the revenue generated from the monthly subscriptions of the textbooks. The marketing team shall be responsible for spreading awareness regarding the new business of the organization and encouraging the respective individuals to subscribe to Netflix textbooks. The operations department shall be responsible for managing the daily activities of the textbook department. The activities shall involve planning, organizing, staffing, coordinating and controlling the organizational resources. It is concerned with conversion of human resources and materials into qualitative services in order to maximize the organizational profits. The human resource department shall be concerned with recruitment, selection, training, performan ce appraisal, managing legal issues and handling employee relations, payrolls and grievances. All the respective departmental heads shall be accountable to the vice president and the vice president shall directly report to the president of the Netflix textbook department. References: Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs more. (2017). Amazon.com. Retrieved 27 October 2017, from https://www.amazon.com/ Chen, L., Mislove, A., Wilson, C. (2016, April). An empirical analysis of algorithmic pricing on Amazon marketplace. InProceedings of the 25th International Conference on World Wide Web(pp. 1339-1349). International World Wide Web Conferences Steering Committee. Walmart. (2017). Walmart. Retrieved 2 November 2017, from https://www.walmart.ca/ Joseph, L., Kuby, M. (2015). Modeling retail chain expansion and maturity through wave analysis: Theory and application to Walmart and Target.International Journal of Applied Geospatial Research (IJAGR),6(4), 1-26. Netflix : Overview. (2017). Ir.netflix.com. Retrieved 27 October 2017, from https://ir.netflix.com/