Karl Irish
The article entitled The Extended Specialty Store: A Strategic Opportunity for the 1990s first discusses the major retailing innovations of the 20th century, the supermarket, the discount store, and the warehouse club, and how these revolutions were dependent on changing consumer preferences and emerging technology. Each innovation resulted in lower prices for the customer in exchange for less customer service. It goes on to state that in the modern retail environment there is less reward for innovation because of the speed in which competitors copy it and that few operating functions are left to foist upon the customer in exchange for lower costs so innovation cannot be based upon price competition. Based on consumer trends, technological trends and labor market trends the author suggests that the extended specialty store might come into existence, which fuses the conventional specialty store with technology that enables sales to be made outside the store. This type of store must focus on the specific needs of the smallest customer base possible, and the customers must be willing to pay more for more service.
This relates to the research topic by showing that projecting customer needs to figure out what goods and services they will want is difficult, that one can identify trends but it is impossible to predict the exact form of what will occur because of those trends. Also the article stated that because of the increasing pace of our society the cycles between revolutions are becoming shorter, so there will be decreasing amounts of time to project customer needs, yet it will still require the long-term view of a strategist rather than the short term view of a tactician.
Bates, A. D.(1989, Fall).The extended specialty store: A strategic opportunity for the 1990s.Journal of Retailing, 65(3), 379-388. Retrievedfromhttp://search.proquest.com.ezproxy.apollolibrary.com/business/docview/228674372/abstract/1317E80966757A23E7/1?accountid=35812
The article entitled Using Customer-Driven Information to Add Value to Lumber informs the reader about how a microcomputer-based, lumber-grade distribution model was developed to allow the manager of a sawmill to use expected lumber prices and selected grading rule adjustments to assess the economics of producing different grade distributions. During a study at the selected sawmill boards where taken out of the production run over a three month period and their defects were mapped. This allowed an algorithm to be developed that could determine if trimming a board so that it would meet a customer’s desired grade based on their specifications would be economically feasible. The result of developing this computer program was an added $89,100 in revenue for the sawmill, and the ability to meet a special need for customers that wasn’t possible before.
This relates to the research topic by showing that it is wise to let customers drive innovation by seeking their input about what products and services they might need. Also it shows that computer modeling can assist the effectiveness and efficiency of innovation to allow an organization to project its customers needs.
Reeb, J. E.(1996, October).Using customer-driven information to add value to lumber.Forest Products Journal, 46(10), 41. Retrievedfromhttp://search.proquest.com.ezproxy.apollolibrary.com/business/docview/214630711/fulltext/1317E80966757A23E7/2?accountid=35812