Competitive strategies in retailing—an investigation of the applicability of Porter's framework for food retailers

Hybrid Strategy: A New Strategy for Competitive Advantage

“…Companies following a differentiation strategy strive to create and market unique products for varied customer groups. They aim to create a superior fulfilment of customer needs in one or several product attributes in order to develop customer satisfaction and loyalty, which can often in turn be used to charge a minimum price for the products (Morshett et al, 2006).…”

“…Differentiation in retail business can be seen as a strategy with the objective of adapting certain store attributes more closely to the specific needs of chosen customers segments (Morshett, et al, 2006). In retail business, as for manufacturing companies, two main arguments against Porter's framework have emerged (see for example Mintzberg, 1996;Worztel, 1987;Zentes & Anderer, 1994): Strategies that combine several competitive advantages are not considered by Porter, and the reduction of possible competitive advantages to two basic types is simplistic, and especially differentiation advantages can be reached in many different ways.…”

Towards modeling the retailer as a brand: A social construction of the grocery store from the customer standpoint

“…Similarly the properties of customized variety and bargaining are both evident in customers' cognitive responses to the choice-widening tiers in private brand ranges which encompass variety (added value) and price (value-for-money) options 23,24 . Additionally in many studies the merchandise variety and prices offered by the retailer are perceived as the prime sources of competitive advantage by customers 49,50 . Finally, the appeal of a value-for-money (bargaining) proposition is the underlying market proposition of discounters -a thriving segment in many retail markets 4,26,51 .…”

Do online shopping styles affect preferred site attributes? An empirical investigation and retailing implications

“…The chosen differentiators, however, need to be of ''value and relevance to the targeted customer segment'' and should be ''perceived by the customer'' as such (Morschett et al, 2006). Retailers like The Limited, for instance, have been successful by not only choosing differentiators that are relevant and offer value to specific segments but also by ensuring that those segments are able to perceive the same.…”