GGR252H5 Lecture Notes - Lecture 10: Home Hardware, Private Label, Franchising
Document Summary
Ggr 252 lecture notes 10 24th march 2008. Product in demand can be supply quickly. Require huge amount of capital however, easy to control. Save cost and close down own warehouse. Loblaws, have very few or their own truck, they outsource. Suppliers, brand name product, push the cost and risk to them. Large retailers, wal-mart, home depot, the have huge volumes sales, ability to determine the price to suppliers because they order a lot. Push retailing, push the retailers to sell particular products, now pull retailing. Wal-mart put pressure on suppliers on lower price. In past, retailers the one control actual consumption. Now, they control production size, consumption size. Positive, retailers can now sell goods in a lower price, eg wal-mart. Reality, they are selling shit in low price, their profit level are not dropping. The larges the market share, the greater the power, control supply and demand. Market share is about how much of a sector is controlling.
