1 . 1 Introduction
The purpose of this investigation is to explore the feasibility of developing a stationery store in my local area. Therefore this will likely be my own primary target. This study will help me personally in identifying if my own business thought is worth chasing, considering standard market research.
The right location has become selected inside the town of Southall, Middlesex. I have chosen this area because it is linked to various main roads which has plenty of targeted traffic each day that i feel will benefit my personal business. In addition, it has many tour bus stops inside the vicinity and has a place within strolling distance, I really believe this will add greatly to my business and generate a healthy custom. The shop would become situated near to many educational institutions which means that virtually all my customers are likely to be college students who usually buy stationery to aid them in their each day studies. I really aim to goal these learners which would differentiate me from the local competition such as Woolworth's who seem to have a reputation in the local area for selling stationery. However they do not seem to specialise in selling stationery but is usually part of a number of products which they offer.
My own main reason for selecting to set up this kind of business is because as a young person living in Southall I realize that there is a insufficient decent stores for students in this area to buy reasonably priced stationery specifically for people older 9 to 19. Also, being a college student, I'm a regular buyer of stationery as a member of my target market I know there is a need for reasonably priced, good quality, stationary in Southall.
My online business opportunity
I think it can be a good home based business setting up in this area as there is already an established local competition including Woolworth's, one particular pound shops and newsagents. This means that you will discover already prospective customers in the place. However , these kinds of shops tend not to specialise in providing good quality stationary at competitive prices.
1 . 2 Three Generic Approaches
The general strategies advised by Michael Porter in his book, Competitive Strategies (1980) are approaches that any kind of business uses to gain competitive advantage more than rivals available in the market. There are 3 main generic strategies, and they are generally;
вЂў Cost command: This is where a business attempts to produce goods or services cheaper than its competitors by utilizing economies of scale. It will do this to charge affordable prices than competitors and to compete in price battles that may happen. Organisation, creation, marketing and distribution will all be geared in reducing costs. Firms that adopt this strategy are likely to give standard, satisfactory, medium top quality products. Elizabeth. g. Wal-mart and Sainsbury.
вЂў Differentiation: That's where a business tries to make a product or service or give a service that is seen as unique by clients. For example , a small business may put special features or a USP to their products to give the goods or services a distinctive personality. A business may charge a premium selling price, higher than additional prices, therefore gain a competitive advantage.
вЂў Focus: This is how a business concentrates on a particular section or consumer group. The business enterprise tries to identify, anticipate and meet the needs of this kind of group. The segment might be a geographical region, age group, male or female or cash flow group. The segment is normally referred to as a distinct segment market. Electronic. g. mp3s.
The generic strategy that my business will be taking on is DIFFERENTIATION, as price leadership and focus are strategies which can be usually taken by large or perhaps well established business who can either achieve financial systems of size or have the essential investment to pay attention to a particular place. Therefore those two strategies may not necessarily suit my small start up organization. Although, many businesses in this area aim low prices so as to differentiate and compete with their rivals.
The stationery I'll be selling inside my store will probably be differentiated from other rival products in my...
Bibliography: вЂў A-Z Business Studies Coursework handbook by Ian Marcouse.
вЂў Internet sites including: www.neighbourhood.statistics.gov.uk
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