Process of Creating a Strategy

Running head: RETAILING MANAGEMENT
RETAILING MANAGEMENT
Name of Student
Name of University
Author’s Note

1RETAILING MANAGEMENT
INTRODUCTION:
Retailer is a person or business from whom we purchase goods from. Retailers usually do
not manufacture any new product instead they sale the products that are manufactured by some
other companies. The retailers receive this product from the wholesaler. The consumer base of
retailer is small in comparison to wholesaler and the manufacturer. Retailing, on the other hand,
is the distribution process of a retailer that obtains goods or services from the wholesaler and
selling them to their consumers. Retailing is one of the major parts of the supply chain. I have
also learned about the process of supply chain and roles of retailing and retailer in a business
cycle.
DISCUSSION:
In order to understand the process of retailing and retailing management, I have learned
about the concept of supply chain and the whole process of supply chain. As per my course
material it is evident that the supply chain plays a major role in the retailing process. It is the
process that takes place between the companies and their suppliers. Supply chain basically
explains the distribution process of any products to their respective end users. In order to become
the retailer the main and basic requirement is the understanding of the supply chain process of
any business. It is the duty of the retailer to ensure that the end users of the product should
receive the product within timeframe and at an affordable price rate. The main players of the
supply chain are as follows:
Manufacturer: Manufacturer is the producer of the product. They produced the goods using raw
materials using different kinds of machines and labor. After the production the end products are

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being distributed among the wholesalers and then they sale that products to the retailers.
Wholesalers usually sell their products at large quantities and at low prices to the retailers.
Retailer: Retailer purchases these products from the wholesaler at large quantities and at low
prices. Retailers sell this product at low quantities to the consumers.
Consumers: Consumers are the end users of the supply chain. They are the ones who actually
buy the product from the retailers. It is their money that actually decides the source of income for
the retailers, wholesalers and manufacturers.
There are many types of retailers. They are as follows:
 Independent Retailer: An independent retailer is the retailer who starts his/her business
from the scratch. They hardly keep any assistant with them. They usually work alone.
 Existing Retail Business: Existing retail business is the business that is running.
Normally someone buys or inherits the ownership and responsibilities of the business.
 Dealership: Dealership is the type of business where the owners takes dealership if a
specific brand and commit to sell their products only.
The best example of retail is the traditional bricks and motor stores. There are many
giants that falls under these criteria. Some of them are Best Buy, Wal-Mart and Target. The
best example of online retailer is amazon, eBay, Netflix and many more.
In order to get the success, a retailer needs to plan for a proper road map, so that they can
easily get access to the products that are gaining popularity. Retailer also needs to consider
the uncontrollable factors like economic conditions, legal restrictions and many more before
implementing a strategy. Thus, the crucial strategy will be to identify the needs, choice of

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quality and also the purchasing power of the customers, so that the retailer can create a
stabilize customer base.
STRATEGIC PLANNING IN RETAILING:
In order to create a retailing it is necessary to create a strategic planning. Strategic
planning is a formal process that is mainly marked by specific activities. These activities create a
marketing plan that assists the retailer to earn profit from the market. There are several factors
that are required to follow in order to create a good retail business. They are as follows:
 Objective Setting: it is essential for a retailer to identify and fix the objective, so that
they can achieve their goal within a short period of time. For example, they can create
an objective of earning 4% more revenue than previous year.
 Situational Analysis: It is the decision making process for a retailer. Situational basis
analysis depends on different factors like organizational capabilities, targeting and
positioning. These factors assist the retailer to meet the customer needs.
 Customer Analysis: Customer analysis is one of the major factors that a retailer needs
to consider before creating any strategy. The analysis may include the customer’s
purchasing power, the dominant age group in the locality of the retail shop, the brand
choice of the consumers and changing decisions of consumers.
 Tactical Planning: Tactical planning enables the retailer to create a short-term goal.
This short-term goal assists the retailer to earn more profit within a short period of time.
Thus, it can be clearly stated that the fulfillment of this factors enables the retailer to
strategies a proper plan, which assists them to create a better business.

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The important takeaway from the retail management is the supply chain of any
product. Retail management also assists to understand the process of creating a strategy.