Case study Retail Shop
Your classmates are a group of friends who have decided to open a
small retail shop. The team is torn between two storefront ideas. The
first idea is to open a high-end antique store selling household items
used for decoration in upscale homes. Members of the team have found
a location in a heavily pedestrian area near a local coffee shop. The store
would have many items authenticated by a team member`s uncle, who
is a certified appraiser.
In discussing the plan, however, two group members suggest shifting
to drop-off store for online auctions such as eBay. In this „reverse
logistics“ business model, customers drop off items they want to sell,
and the retail store does all the logistics involved – listing and selling
the items on eBay or Amazon, and then shipping them to buyers – for a
percentage of the sales price. They suggest that a quick way to get starte
dis to become a franchisee for a group such as „I sold it“.
1. What is the business strategy for each of these two store concepts?
2. How would the organizational structure be different for the
concepts?