Rebuilding the Relationship Between Manufacturers and Retailers Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Today's retail business is more concentrated than ever - in many sectors and markets, a handful of retailers account for a majority of the sales. Their ability to command market access and influence consumer purchasing behavior means that producers need retailers. And just imperatively, the authors claim, they need to comprehend what makes retailers tick. They notice, as retailer influence has grown, power has proceeded downstream. Consolidation along with the global scale of retailers has reduced the number of "buying points" that producers can develop. Yet neither side is satisfied with the present system. Many retailers have difficulty converting commerce promotion into gains. Rather than developing longer-term partnerships with suppliers and nurturing store and shopper loyalty, retailers have a tendency to compete on cost and fritter away the commerce support they pull from makers.

What might be done to improve the specific situation? While producers are locked into big fixed investments and wedded to products and brands with long payback cycles, retailers have a number of ways of making money. The particular strategy, or the mix of strategies, that a retailer chooses defines the retailer's business model and the way that it differs from challengers. The article highlights four distinct retail business models, as exemplified by Tesco, which connects with consumers through its loyalty program; Loblaw, which relies greatly on private labels; Costco, which gets its suppliers to fund its stock; and Wal Mart, which focuses closely on margins.

Rebuilding the Relationship Between Manufacturers and Retailers Case Study Solution

PUBLICATION DATE: January 01, 2013 PRODUCT #: SMR443-PDF-ENG

This is just an excerpt. This case is about STRATEGY & EXECUTION