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Business environment jewellery, organic food and tesco - Essay Example

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Business environment jewellery, organic food and tesco

The jewellery and watches market is highly competitive in terms of both supply and retail.
Recent years have seen the emergence of several luxury-goods and high-fashion conglomerates into the market, which possess strong brands that are supported by substantial financial resources.

In addition to the above implications of excess capacity in Jewellery market, the major implication is the phenomenal change in customer buying behavior.

To what extent might the traditional small jewellery and watch operators be considered to be suffering from unfair competition from 'luxury-goods and high-fashion conglomerates' 10 marks

Traditional small jewellery and watch operators suffer a major setback in business because of the increasing competition from luxury goods and high fashion conglomerates. There are many instances where the traditional jewellery has lost its importance and the demand for the same is fading because of the evolution of new type of fashion jewellery.

Some of the critical aspects for major setback for traditional jewellery
Evolution of high fashion conglomerates in the jewellery industry paved way for changing consumer behavior and shift in the purchasing methods and dimensions.
The conglomerates use their financial strength to identify key locations that are expensive for better customer segment reach.
The traditional firms are a way behind in reforming their practices and are slightly reluctant to change any dimension of their jewellery setup. Whereas the conglomerates are ready to spend fortune on effective advertisement and branding techniques and deploy promotional strategies to attract customers and achieve brand loyalty paving way for effective customer retention.
After the great depression, there has been a shift in consumer...
The Supply factor out paces the demand of jewellery leading to reduction of prices, minimizing the ultimate corporate profit by a small percentage and increase in job cuts as a measure of sustainability.
Traditional small jewellery and watch operators suffer a major setback in business because of the increasing competition from luxury goods and high fashion conglomerates. There are many instances where the traditional jewellery has lost its importance and the demand for the same is fading because of the evolution of new type of fashion jewellery.
The traditional firms are a way behind in reforming their practices and are slightly reluctant to change any dimension of their jewellery setup. Whereas the conglomerates are ready to spend fortune on effective advertisement and branding techniques and deploy promotional strategies to attract customers and achieve brand loyalty paving way for effective customer retention.
After the great depression, there has been a shift in consumer buying behaviour, their choice and preferences leading to more modified buying motives. With the effective marketing initiatives, the customer target base is attracted towards designs which are fashionable and simple for official purpose. ...Show more

Summary

Supply and Demand Diagram shows the Supply Line where there is a cyclic trend towards increase in the supply and the demand line projecting towards a downward slope and the intersecting Equilibrium Point is the balance between supply and demand and this can be attained only when there is uniformity in supply process and adequate consumer demand to purchase the entire supply…
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Business environment jewellery, organic food and tesco essay example
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