Roebuck Company came into existence in the year 1886 where it was founded by two men namely Richard Warren Sears and Alvah Curtis Roebuck. It was a worldwide store that specialized with chains. The stored consisted of universal commodities, clothes, locomotive chunks and facilities. Being an all rounded store, it attracted many customers leading to their increased profits. They were able to tap the revenues from all the available avenues. Having the products in the same store would help reduce the transportation costs of the consumers, therefore an added advantage to them as the transport money saved would be used to procure more products.
Having started as a local store, it grew gradually due to the profits earned over time. It specialized in the retail department where they would supply the commodities directly to the consumers. This process helped to evade the middlemen who happen to increase the prices of the products reducing the purchasing power of the products. This attribute would then work to their advantage as they won the customers’ loyalty for supplying the products themselves. Their involvement with the consumers helped them connect with them hence identifying their problems and addressing them as fast as they could. Their products had been widely known resulting to the increase in their customers who led to the increased revenue collections.
After conducting an adequate research on the products that were not readily available in the American market, they were able to cite the necessary products that would fetch the business many profits within a short period of time. It was also favored by the political stability and the economic status of the nation. However, the business would face several economic challenges due to the fluctuating economy thus experienced losses. The demand of their products was also high, therefore, their supply at the right time and quantity helped meet the customer demands resulting to high profits. The capital was adequate enough to finance their store hence would never run out of stock.
They had a competitive advantage over their competitors as they supplied products that their rivals would not be able to duplicate. The diversity of their products was a competitive advantage as the country’s stores that provided the same products had increased. They also had their target markets that made it easy to sell their products. The ready market of the products led to the increase of their sales thereby; increased profits. The availability of the stores in different regions helped them gather more income. The indigenous people would be relieved as the products would be readily available to them. They also developed a sense of belonging and in return they purchased the products in large numbers. It was a way of advertising their products as the more they were in most regions, the more the people came to learn of their existence. Despite being at the initial stages, the people would purchase the products due to curiosity so as to experiment them.
The stores were also strategically located allowing the customers in at any time. It acted as a plus for them as people would prefer the location where it was possible to reach. Both the parties decided to rent the stores that would be cost effective in terms due to their reduced rates. This was a good strategy since their expenses would be reduced at a greater percentage. The prices of their products would be subsidized to catch a greater market share. It was an added advantage to them as the consumers would opt to buy the subsidized prices as opposed to the increased prices from the other suppliers. The customers would contribute to the store in its earning of a greater market share in the society.
Maintaining the high quality products would be substituted the increase of the customers. Customers would prefer the products that were durable as they are long lasting. The poor quality products would require to be purchased on a frequent basis thus turning out to be expensive. The loyalty of the consumers would be won by this attribute, further increasing their revenues. The greater profits earned were ploughed back in the business that aided in their expansion of their business. The growth of the stores necessitated the employment of more people hence providing employment opportunities to the youth. Later their remuneration rates were increased hence their improved living standards. The increased salaries also increased the employees’ purchasing power in the procurement of the business products. The technology was advancing with time and so was required of the business. The firm adopted new brands that helped in the attraction of customers. The branding was perceived to improve the public image of the firm proving its flexibility.
Nevertheless, for any business to be successful in its operations it has to go different stages and humility must be present. The economic status of the country must be identified and the management should respond accordingly to prevent massive financial losses. Expert knowledge should be sought to help businesses identify their strengths, weaknesses, opportunities, and threats. Sears Roebuck Company provided a good example to the infant businesses to work extra hard and take advantage of the opportunities in the market as they present themselves.
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