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Marketing Strategy Case

Essay by   •  November 1, 2012  •  Essay  •  265 Words (2 Pages)  •  766 Views

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When Dick Smith first appeared, it was a hobby shop with electronics offer, but they soon realised their marketing strategies were not suitable with the customer's taste purchase any more at that time. So, they spent two years to transform from origination into a consumer electronics retailer to rival market leaders Harvey Norman and JB Hi-Fi. Dick Smith is now tending to supply home entertainment and electronic market. Even with conventional products, they are still finding and exploiting opportunities to make them more distinct by services. They tried to create an offer that attracts customer of all ages, beside existed a lot of that old range, they are always supplied latest products with affordable prices.

Dick Smith acquired most of the retail market from the hands of traditional department stores and specialty stores. Their success thanks to the ability to offer products at lower prices, and they have developed that capability by keeping its cost structure is always lower than the cost of the traditional competitors.

The company's strategy is a system of interdependent parts. As to Debra, the potential for success will be higher when such activities are apparently not related to mutual assistance but support to the whole strategy: "Benefits Dick Smith's competitive advantage comes from the way in which their activities match and support each other". That means Dick Smith is the strategy of competing on the basis of low cost, frequent services. This activity is supported by turning stores into the new format, keeping the small range but diversity in brands, focusing on group of customers, connecting with social and environmental responsibilities etc.



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