Author Question: Explain how the concepts of demand density, supply density and site availability can be used by a ... (Read 53 times)

cabate

  • Hero Member
  • *****
  • Posts: 537
Explain how the concepts of demand density, supply density and site availability can be used by a retailer to optimize site selection.

Question 2

Discuss the three types of learning and their implications for retail success.



iman

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

Demand Density:
To determine the extent of demand density, retailers need to identify what they believe to be the major variables influencing their potential demand. One such method of identifying these variables is to examine the types of customers who already shop in the retailer's present stores. The variables identified should be standard demographic variables such as age, income, and education since this data will be readily available.

Supply Density:
While the demand-density map allows you to identify the area within a community that represents the highest potential demand, the location of existing retail establishments should also be mapped. Information about the lack of available space as well as the number of retailers already serving the market is most important because it allows the retailer to examine the density of supplythat is, the extent to which retailers are concentrated in different areas of the market under question.

Site Availability:
Just because demand outstrips supply in certain geographic locations does not immediately imply that stores should be located in those locations. Sites must be available. A map should be constructed of available sites in each community being analyzed. Many service retailers are not only returning to shopping centers but also moving into some vacant but very unconventional locations. Some retailers have developed a checklist of all the items they want to consider during the site analysis stage.

Answer to Question 2

The three types of learning are:
(1) Single Learning.
(2) Double-loop learning
(3) Triple-loop learning

Single-loop learning is used when the actual return on assets is less than the projected return on assets. This triggers action by the retailer around the two primary determinants of return on assets: net profit margin and asset turnover. One or both of these would need to be increased to get the returns back to projected goal.. Single-loop learning is also often thought of as asking the question Are we doing things right?  to achieve our goals.

Double-loop learning looks at whether the retailer is doing the right things versus merely
doing things right. It is a deeper form of learning. In this situation, the retailer may
actually be achieving its goals, but the goals may, in fact, reflect not the right things on
which it should be focused.

Triple loop brings forth a deeper and more philosophical question and that is What is our right business model? Triple-loop learning can often lead to reframing of the retailers business model.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

For a complete list of videos, visit our video library