Writer’s Choice
Question 6
Retail geography is still relevant despite the growth of e-commerce since many customers prefer to physically visit a shop during a purchase. Many of these customers claim that in case a product has defaults after purchasing, knowing the geographical location of a shop puts them at ease especially if they live in a large town. There are shop owners who relish a physical interaction with their customers. In this case, talking and offering excellent service to their customers serves as a therapeutic experience. On the contrary, purchasing goods online does not demand physical etiquette since much of the interaction is monetary. Additionally, shoppers online have to be careful when filling out addresses for shipment purposes since a wrong location leads to a longer time taken to receive the product. Such reasons are why retail geography is still relevant and customers opt to travel long distances and buy from a physical location.
E-commerce products reach a huge customer base since marketing and advertising is done online to millions of people, however, the success of internet retailers depends on geo-targeting. This process involves internet marketers targeting specific geographical locations around the globe. Once target customers are identified, online shop owners establish retail stores near them. Therefore, internet retailers still rely on retail geography to get new customers. Due to the growth of online platforms, online entrepreneurs can penetrate foreign markets. However, achieving this requires the synthesis of a place from a geographical perspective. Such research helps online firms know the safest routes to deliver products to customers as well as the option of setting up temporary shops as pick-up locations. More importantly, shipping a product from one location to the other requires those responsible to know the layout. The importance of this is reducing extra costs associated with hiring local tourist guides. All in all, e-commerce continues to grow as online customers increase, however retail geography remains relevant since internet retailers are required to know a place physically.
Question 7
Key market factors that Jim should consider include customers, employees, type of environment, and business partnerships. Expanding the store to offer groceries and other general products leads to an increase in customers in both local and foreign markets. To achieve this, Jim needs to offer quality products and incorporate the differentiation strategy by offering unique services setting him apart from other competitors. An increase in customers protects his business in case the environment is hostile or competition is high. More importantly, unique products and quality service lead to happy customers ensuring the longevity of the grocery store. Jim needs to scrutinize his business partners wisely since this affects the type of procurement contracts he will get. Jim previously offered one line of product, but choosing to expand to general products demands new suppliers. He is required to do a survey on the most reliable suppliers and establish a good working relationship with them. All in all, Jim expanding his grocery store is an excellent idea provided he follows the correct protocol in business expansion.
Given the shift in the products he is offering, the demand will increase and supply will be low for a while until he gets stable suppliers. The demand will increase because he is now offering more products hence customers are many and diversified. Additionally, the supply will decrease until he partners with reliable suppliers. Therefore, he will not be making profits but as the business grows, it will be more profitable. Jim however faces a dilemma since his demand exceeds the supply. Notably so, the prices of his products will be high meaning that he will have few customers. All in all, there will be an inverse relationship between supply and demand given the shift in the offered products. After studying the market and partnering with suppliers, an increase in the general products means prices will be at equilibrium. All in all, relationships between demand and supply are affected by an expanding business.