Question

Identify any strategic groups that might exist in the industry. How does the intensity of competition differ across the strategic groups you have identified? My company is Bed Bath & Beyond
please answer based on company BED BATH AND BEYOND

Answer 1

Bed Bath and Beyond is a domestic merchandize retailer in USA. Although Retail chains which run stores are big and domestic merchandize and home décor retailers are a subset of the general retailers. There are strategic groups within the domestic merchandize retailers who have same strategy . The key groups in domestic merchandize retailers are

1. Who only concentrate on the domestic merchandize and home décor as their business models with Companies like Bed Bath and Beyond, Williams-Sonoma,Ikea etc .
2. Other Strategic group is online companies like wayfair, amazons who sells domestic merchandize online and have no stores.
3. Finally another strategic group is big retailers like Kohls, Home Depot etc. who along with other merchandize sell Domestic and home décor merchandize.

The competition among the groups is intense as all are eying for a limited pie. The exclusive stores for home and domestic merchandize offer a unique experience for targeted customers who would buy in stores. The Big retailers with their home décor and domestic merchandize sections in their big stores want give the customer’s one destination for all their needs and look to enhance revenue. The online only companies like Wayfair offer consumers a digital experience and give consumers the comfort of buying from home.

The competition is very high amongst the store retailers and online companies catching up in the revenue share game.