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IDELCA - Multi Channel - 2015/2016 Your task is to evaluate each of their strategy initiatives. In other words, to what extent do you agree with their Strategic priorities? Thompsoanmith is one of Australia's largest retailers. They have around 1,000 different stores, across ve bral namely: " Tommy's Supermarkets (500 stores), * Tommy's Clothing (17 stores), * Smith's Shoes (100 stores), '* Smith and Chips (300 stores), and * T+S Gas (fuel) (100 stores). They have set their vision as being Australia's number three retailer, behind the two dominant players. They ha dened their strategic priorities as: 1. Reposition the Supermarket chain Tommy's generally targets budget shoppers. It primarily competes with lower-priced, smaller supermarkets ch: It is important that we reposition our stores as full~service, higher quality supermarkets. This will enable us to compete directly with the major chains. As part of this strategy, we will introduce 'fresh food' sections of our supermarkets, relocate many stores to more prominent locations, and introduce a broad range of private label brands. 2. Add Tommy's Clothes Online Online channels have been slowly taking a greater share of retail sales. To date, ThompsonSmith has not enter the world of evtailing. Tommy's Clothes, our chain of fashion clothing stores has been chosen as the rst ventu into multiechannel retailing In order to promote this new channel, a signicant promotional effort (using mair billboard advertising) will be embarked upon over the next 12 months. 3. Franchise Smith's Shoes Our chain of men's shoe stores has been performing generally well. However, there is a clear franchise trend wi the Australian market at the moment. Therefore, this presents a growth opportunity for us. The plan is to franc around half of the existing stores and to add another 100 stores through franchising. 4. Redesign Smith and Chip's Stores Our chain of fast food (sh and chips) stores is lacking in the facilities of our more aggressive competitors, in particular McDonald's. Over the next ve years, all our stores will be redesigned to include a kid's playground, lounge area, a drive~through, and increased parking. In order to gain a competitive advantage, we plan to add a 'amusement arcade' section (which will both generate income and differentiate us in the marketplace). 5. Enhance the Loyalty Programs of T+S Gas/Fuel This sector is becoming more competitive, with the joint ventures of the major supermarkets with existing gas. suppliers. In order to compete, we need add a loyalty program that provides an incentive to purchase petrol (be on a discount earned from purchases at our other stores). QUESTIONS 1. To what extent do you agree with their strategy for their supermarket chain? 2. To what extent do you agree with their strategy for clothes online chain? 3. To what extent do you agree with their strategy for Smith's shoes? 4. To what extent do you agree with their strategy for Smith and Chips? 5. To what extent do you agree with their strategy for their loyalty program? 6. If you were to be in charge of the company, could you explain which overall and multi Channel strategy you would think of? Explain and design it in detail
