99 Cent Only Business Strategy v. The Competition.

David Gold, founder and chief executive officer says the 99 Cent strategy is to have the shortest path possible between the customer and the sale (Rae-Dupree, 2004). This is cardinal number in deep discount retail in stupefy to purchase close-out and other special-situation merchandise at prices substantially under wholesale that transport at prices significantly below step retail (Symplicity, 2005). Over the past two years, the bon ton has suffered a $17.00/ grant loss on its stock (from $30 to $13.00) in the main delinquent to declining operating(a) margins (Domash, 2004) caused by over-optimism in the Texas marketplace. Competitors were more late entrench than their research had shown, and reduced earnings forecasts combined with declining operating margins were the sell signal for many investors in the company. Also, the need to stir their IT groundwork to support expansion in its California travelling bag market was the second company downfall. The foll owing is a compendium of the company strategy: 1. Focus on brand make water consumables. 2. openhanded selection of regularly available merchandise. 3. Attractive and well-maintained stores. 4. watertight supplier relationships. 5. Focus on larger stores and wider demographic of value-conscious customers. 6. welcome and plastic Store Hours and Policies The Role of IT Infrastructure in operations and railway line Strategy CEO DISCONNECT WITH engineering science 99 Cents Only strategy is supported by variety technologies that must always fall into line with David Golds theorem that the company stomach not spend money on engine populate to attain information it will not utilize (Symplicity, 2005). Golds comments that he does not even have a computer in his great power seems to make him technologically reluctant. The psychology of the CEO is certain to permeate the thinking of those under his leadership. His attitude may have contributed to the companys polity o f writing its own software and its modesty ! to upgrade technology sooner. The operations failure... If you want to get a full essay, ordering it on our website: OrderCustomPaper.com

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