In today's market environment, nobody has it easy. Very few industries and companies were and are able to continue business as usual. Most are feeling the mounting direct and indirect pressures & challenges to their business models, distribution channels, complete value propositions and brands. Defining a competitor and having a clear picture who with and how to compete has never been blurrier. For a clear picture of competition one needs industry level competing factors and those have rapidly changing. Retail has been particularly tough - both for brands in retail and retailers themselves, but also let's not forget all the ecosystem / partners around them who work within this ecosystem - from real-estate developers to marketing agencies.
The decline of brick-and-mortar retailers will likely have even more far-reaching effects than store closures. Other areas affected by store closures-such as real estate and suppliers-will also suffer as a result.
Retail and Brands in Retail are facing a Strategic Inflection Point
Retail and Bands in Retail are facing a Strategic Inflection Point. An inflection point is a critical time in an industry where the basis of competition changes from one basis to another. Inflection point happens to a business when a major change takes place in its competitive environment - due to introduction of new technologies, due to the introduction of a different regulatory environment or simply due to a change in the customers' values, a change in what customers prefer. Over time, key customer relationships, business models or primary markets go through transitions. What was once a great business engine can grow less viable years later because it has become outdated or ineffective due to market shifts or new developments in industry’s business environmental conditions. Last decade if you are a brand in retail and a retailer you have seen accelerating changes in all of these dimensions. Walmart conquered America with its big (brick and mortar) boxes. It must now contend with millions of small ones, piled high on America’s doorsteps due to Amazon. Digital technology has shifted the base of competition multidimensionally - altering consumer preferences, competition landscape and sometimes even regulatory environment.
Digital technology has shifted the base of competition multidimensionally - altering consumer preferences, competition landscape and sometimes even regulatory environment.
Strategic Inflection Point is not unknown in business - Intel has successfully managed two. In their example there's been a commoditisation of products - first memories (DRAM), later microprocessors.
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