Is Merging or acquiring a store a competitive advantage and why?

Question

Do you think that Merging or acquiring other stores would help value clothing retailers when competing aganist supermarkets?

Do you feel that this is a good way for them to gain more market share?

Any answers will help, thanks

Answer 1

it can...but remember: more stores = more & higher costs.

it will give you a disadvantage if:

-you get a smal lnumber of stores

-you are unable (or do not know how) to manage the extra stores

-you cannot cover the new and higher costs after  the merger

you need to do the research on the stores you want to aquire. see what costs you can get rid of once you merge (this is mosty employees and suppliers). you also need to know what how this will effect your revenues and profits (will your margins and/or revenues increase, or decrese?).

you also need to research your competitors (supermarkets). what advantages do they have over you? how can you shape the merger to cancel out this advantage? or is it better to stay small and nimble? will this merger effect your market niche?

ultimately, only you can decide if this strategic business move is right for your brand.

if you need any more help, feel free to email me at [e-mail].

Answer 2

Yes, because it allows them to order their merchandise in larger quantities, therefore driving down their prices, therefore being more attractive to the public.

Answer 3

yes they would be gaining market share, there are other things to take into consideration like locatioin which leads you onto market share of a particular geographical area - you could also say the same for demographics - this might give some differentiation from the wide spread of market that the supermarket has.

Answer 4

Yes.........the more exposure the more market.........