| retail market | A group of consumers with similar needs (a market segment)and a group of retailers using a similar retail format to satisfy those consumer needs. |
| retail strategy | A statement that indicates (1) the target market toward which a retailer plans to commit its resources, (2) the nature of the retail offering that the retailer plans to use to satisfy the needs of the target market, and (3) the bases upon which the retailer will attempt to build a sustainable competitive advantage over competitors. |
| retailing concept | A management orientation that holds that the key task of a retailer is to determine the needs and wants of its target markets and to direct the firm toward satisfying those needs and wants more effectively and efficiently than competitors do. |
| scale economies | Cost advantages due to the size of a retailer. |
| situation audit | An analysis of the opportunities and threats in the retail environment and the strengths and weaknesses of the retail business relative to its competitors. |
| strategic alliance | Collaborative relationship between independent firms. anFor example,a foreign retailer might enter an international market through direct investment but develop alliance with a local firm to perform logistical and warehousing activities. |
| strategic retail planning process | The steps a retailer goes through to develop a strategic retail plan. It describes how retailers select target market segments, determine the appropriate retail format, and build sustainable competitive advantages. |
| strengths and weaknesses analysis | A critical aspect of the situation audit in which a retailer determines its unique capabilities —its strengths and weaknesses relative to its competition. |
| sustainable competitive advantage | A distinct competency of a retailer relative to its competitors that can be maintained over a considerable time period. |
| target market | The market segment(s) toward which the retailer plans to focus its resources and retail mix. |
| vertical integration | An example of diversification by retailers involving investments by retailers in wholesaling or manufacturing merchandise. |
