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Article
Publication date: 27 February 2007

Outi Uusitalo and Maija Rökman

The purpose of this paper is to explore the impacts that a new retailer entering a previously stable market has on the domestic retailers' pricing behaviour. The paper describes…

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Abstract

Purpose

The purpose of this paper is to explore the impacts that a new retailer entering a previously stable market has on the domestic retailers' pricing behaviour. The paper describes and analyses the context of the entry of the hard discounter chain Lidl into the Finnish market.

Design/methodology/approach

To illustrate the effects of competitive entry on pricing behaviour of competitors, prices of 20 grocery items were collected from three different chains and three market areas in three different points of time. Based on these data the pricing initiatives of the entrant and the reactions of the domestic competitors are described and analysed in terms of four dimensions: competition, geographical, assortment, and time.

Findings

The analysis reveals that the domestic retailers reacted to the intensifying price competition by engaging in selective price changes. Both price cuts and price increases were detected.

Originality/value

The paper provides empirical insights about the impacts of intensifying competition on pricing.

Details

International Journal of Retail & Distribution Management, vol. 35 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Available. Content available
Article
Publication date: 27 February 2007

John Fernie

356

Abstract

Details

International Journal of Retail & Distribution Management, vol. 35 no. 2
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 25 September 2007

The purpose of this paper is to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

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Abstract

Purpose

The purpose of this paper is to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

In the cold, hard business world of the twenty‐first century there are several markets where the competitors are allowed to throw around comments to shareholders about the “cut‐throat” competition, the “toughness” of competition, or even the “white heat” of competition. Retail is decidedly one of these markets, however while these mitigations may have some truth in the US, UK or Germany, there are still some countries where the idea of a wholly new foreign entrant successfully arriving into a new market is not pure fancy.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Details

Strategic Direction, vol. 23 no. 10
Type: Research Article
ISSN: 0258-0543

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