Essay: Business Model
Convenience stores fall in the category of brick and mortar outlets where consumers buy goods directly from the retailer who is the convenience store. This type of business can successfully adopt the direct selling model. This is a model that can be defined as one that markets and sells its products from a fixed location for instance a physical store directly to the end consumers (Don, 2006). The convenience store is likely to be located in an area with a high population so as to capture many potential clients.
This model advocates for personal contact marketing of products. The convenient store will have to be competitive in terms of pricing, service delivery, variety of commodities as well as in its general outlook as it will be located in an area with several other similar businesses. The company will have to get its customers from the existing population of potential clientele by pricing goods competitively, offering service that is considerably faster and better than that of existing businesses as well as by advertising to the clientele to ensure they know of its presence (Don, 2006).
The work ahead for the convenience store is rather difficult considering that there is some amount of customer loyalty to the other existing businesses. The five Porter forces will be in play with the entry into the market being rather difficult. There is a threat from substitutes in this case other similar businesses which also bring in the probability of rivalry due to competition (Don, 2006).
The store will thus have to find the weaknesses of the other businesses and use this as a diving board from which it will launch into the market. By making sure that it utilizes all its strengths and also changes the weaknesses of its rivals into strengths and opportunities, the firm will easily gain market share and therefore progress profitably while retaining and attracting more customers thus more profits (Don, 2006).
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