1. BUILDING COMPETITIVE ADVANTAGE IN RETAILING The Eight Ways to Win
BUILDING COMPETITIVE ADVANTAGE IN RETAILING The Eight Ways to Win! Lawrence J. Ring, Chancellor Professor & John S. Strong, CSX Professor of Finance & Economics Mason School of Business The College of William and Mary, Williamsburg, Virginia USA (1)

2. The Eight Ways To Win In Retailing The Pentagon & The Triangle
PLACE
SYSTEMS
COMMUNICATION
PRODUCT
LOGISTICS
SUPPLIERS
PEOPLE
VALUE

3. Five Key Questions for Each Pentagon Corner
Do we win?
By how much? (a little or a lot?)
Is it getting better or worse? (direction)
Does anybody care?
Is it sustainable?

4. Pentagon
Concepts
8 Ways 2 Win
Size
PLACE
Location

5. Notion of Inside Vs. Outside Draw
9 miles
6 miles
3 miles
UPD = 1,000 persons/sq.m.

6. Pentagon
Concepts
8 Ways 2 Win
Size
PLACE
Location
Layout & Design

7. Pentagon
Concepts
8 Ways 2 Win
PLACE
PRODUCT
Intensity
Assortment

8. Merchandise Intensity and Sales
Sales/Sq Ft
Inventory/Sq Ft

9. A Strategic Approach to Inventory Management
Old Game
Convenience
Assortments
Competitive
Dominant
(Power)
Differentiated
(Focused)
Velocity
Opportunistic
New Games

10. Pentagon Concepts 8 Ways 2 Win PLACE PRODUCT Intensity Assortment
Style & Fashion

11. Fashion versus Value

12. Pentagon Concepts 8 Ways 2 Win PLACE PRODUCT VALUE Price EDLP v Hi Lo
Quality

13. Price x Quality = Value

14. Pentagon Concepts 8 Ways 2 Win PLACE PRODUCT PEOPLE VALUE Service
Knowledge
Climate
PEOPLE
VALUE

15. Pentagon Concepts 8 Ways 2 Win PLACE COMMUNICATION PRODUCT PEOPLE
Brand
COMMUNICATION
PRODUCT
Positional
Promotional
PEOPLE
VALUE

16. Triangle Concepts 8 Ways 2 Win SYSTEMS LOGISTICS SUPPLIERS
Provide the mechanisms for controlling flows and operations ... Essential for managing
categories item by item, store by store, market by market.
LOGISTICS
SUPPLIERS
Physical movement of goods from vendors to stores ... A major frontier for improving asset management and reducing costs throughout the channels of distribution.
Partners in marketing and distribution ... Effectiveness of the relationships determine both the rate and cost of sale, and the ability to implement some of the key triangle activities.

17. Automatic Replenishment
Triangle
Activities
Quick Response and
Automatic Replenishment
EDI Software [Electronic Data Interchange]
UPC/Barcode [Universal Product Code]
CL [Carton Labelling]
PSS [Planogram Software System]
Programmed Supply Relationships
Information Sharing
Perpetual Inventory and VMI
ECR [Efficient Consumer Response]
CPFR [Collaborative Planning, Forecasting, and Replenishment]
RFID
JIT and LTO
Replacement of Labor
by Technology
Front-End Scanning
Labor Scheduling Systems
Workforce Optimization
Electronic Shelf Stickers
Automated Warehouse/DC
Self-Scanning and Checkout
Automated Picking Lines
Store Security Systems
Environmental Controls
Supply Chain and Logistics
Merchandising and
Space Management
Greening of the Supply Chain
Global is here to stay
RFID Continues to Grow
Focus on Risk Management
Supply Chain Vendor Consolidation
Voice Technology in Distribution Grows
SKU Data Capture
DPP [Direct Product Profitability]
Rapid Intensification and Delisting
Modularization in Store Design
Price Optimization Software

18. New Triangle Technologies Open Systems Client Server
Rapid Technological Advances
Niche Vendors
Mergers & Acquisitions
Outside Data
Client Server
End User Empowerment
GUI [Graphical User Interfaces]
Walk Up & Use
Touch Screen
Multimedia
Interactive Training [scheduled &JIT]
Customer Self-Service Sales/Marketing Kiosks
Services Delivered To The Home
Data Manipulation Technology
Data Base Management Systems
On-Line Transaction Processing
Decision Support Systems [Inventory Flow]
Knowledge Processing [Promotions]
Object Oriented Technologies
Wireless Technologies
RF ID [EAS & Multi-Bit]
Produce Identification

19. The Eight Ways To Win In Retailing The Pentagon & The Triangle
Size
PLACE
Location
Layout & Design
SYSTEMS
Style & Fashion
PRODUCT
COMMUNICATION
Intensity
Positional
Assortment
Promotional
Service
LOGISTICS
SUPPLIERS
Knowledge
Price
Climate
PEOPLE
VALUE
Quality