Developing a Competitive Strategy for a Retail Shop

The primary aim of this study is to develop a competitive strategy for a retail shop. To investigate the current situation and provide a strategy it is necessary to: 1. observe literature on strategic planning, internal and external analysis of a firm to choose relevant models and theories; 2. make an external analysis on micro- and macro level; 3. make an internal analysis including conducting interviews with experts based on the developed semi-structured guide; 4. make strategic recommendations for a firm’s owners and develop a competitive strategy. A desk research is used to choose the most relevant models and techniques from theoretical observation. Therefore, a documentary analysis is be carried out in order to examine the structure of the company, its current financial results, and also the current marketing and operational strategy. The proposed study also includes interview with the experts – these are the ones, who see the company and the market from the inside. In order to summarize and analyze the collected information, the common economic models are used. The Porter five forces and PEST analysis are applied for external analysis while SNW analysis is used for evaluating internal factors of the company. Furthermore, SWOT method is applied to summarize the information and formulate strategic alternatives. To sum up, the proposed study is based on collecting and analyzing information with the methods listed. The result of a theoretical review of sources is a choice of relevant models and theories for further application. The analysis of the external environment is aimed at understanding the market position of the firm, identifying and evaluate key success factors of the industry, analyzing and compare local competitors’ indicators. The analysis of the internal environment is aimed at revealing the weaknesses and determining the advantages of the firm. Interviewing is used to identify expert information about the company and the market in which it operates. The main result of this study is a list of strategic recommendations for a company’s owners and managers.