INDUSTRY ANALYSIS

Industry Analysis

Industry Analysis

Strategy and it's development

Strategic change needs to well mould for existing people system, new technology and new work process together, and management of organisational culture is essential to succeed in business. Additionally, development and concentration with respect to belief among employees in organisation shall greatly account for and help create the effective performance of company.

Whenever discussing about the workload that has been undertaken in terms of managing strategies, there have been several measures that have been undertaken for the purpose and objective of making justified amends accordingly. This implies that all organizations and the happenings that have been undertaken require a specific change and towards a defined line

(Abelson, 2005).

Value Chain

Every product moves through a “chain” of activities from resource extraction to production and distribution, while in the process gaining value at each step. Value and cost, in this concept, are not the same: the cost of a step in the chain may be relatively low (as in pumping crude oil out of the ground), but it adds greatly to the value of the good. Conversely, a cost may be relatively high (as in transporting gasoline to the various gas stations), but the value added is very low (Aldrick, 2004).

The initial concept of the “value chain” was introduced by Harvard business professor Michael Porter in his 1985 book Competitive Advantage: Creating and Sustaining Superior Performance, and further developed in subsequent work. Competitive advantage represents a company's ability to sustain its position in the industry, maintaining levels of profit while outperforming competitors. A perennial topic of discussion in business has been how to develop sustainable competitive advantage—how to remain in that position, without one's competitors duplicating one's value-creating processes (Blackwell, 2002).

Impulsive Buying Behavior

Impulsive buying behavior is affected by a number of factors, from demographic, cultural and individual to environmental ones. The leading idea of this study is consideration of situational factors as "stimulators" of impulsive buying behavior. Namely, the notion is that the consumer, who is determined by his/her personal characteristics, comes to a concrete shopping environment, which by its specific features will in some way influence him/her (Bureau of Labor Statistics 2009).

The purpose of this study is to determine the correlation of situational factors and impulsive buying behavior. Consequently, the study will Endeavour to answer the following questions: Can situational factors stimulate impulsive buying and to what extent? Considering the effect of the analyzed situational factors on impulsive buying in respondents is it possible to isolate different consumer segments? Do these segments differ in terms of particular demographic features? The analysis is carried out on the data collected by a survey in Split-Dalmatia County. The data are analyzed by descriptive analysis, cluster analysis, and chi-square test (Winkler, 2002).

This study partly relies on the previous research of situational factors ,and their impact on impulsive buying behavior, while it considers other and additional situational variables (such as skill and friendliness of sales staff, store location, promotional activities, special displays, ...