However, the case is surrounded with so many challenges because today’s retailing world is vastly covered by competition. The future will be reshaped by the emerging trends where it illustrates on what the business is experiencing today will surely be changed when tomorrow comes. This is the reason why critical knowledge about fast changing trends must be integrated into the retail strategy to drive opportunities. The business must plan ahead of time before it will lose its competitive advantage.
The main thrust of this paper is to analyze the different positions of Simon and Smith in their store’s direction as well as the alternatives that would help in looking for potential changes and opportunities.
Simon and Smith had different views in terms of directing their store in order to stay ahead of the competition. Simon seemed to be satisfied with the current performance of the business. Furthermore, he said that as long as they will be using the same retailing strategy for the coming years, the business will remain to be at the top of the competition. He was not in favor on the idea of attracting young customers for the reason that both of them did not have enough knowledge on the nature of the new segment and it might drive away their loyal customers. On the other hand, Smith was less satisfied compared to Simon because he was worried on the foreseen intense competition. He wanted to change the retailing concept and the growth strategy of the business to be more prepared when competition arrived. He presented potential changes in the customer base of the business and discussed important opportunities to develop sustainable competitive advantage. The opportunity was on how to attract younger customers as the new target audience. Instead of putting all efforts on customers whose profile ranges from 35 to 50, the business will now shift to a larger audience which is the young generation.
“The retail sector is one of the most competitive in the business