SHOE STORE

Opening a Payless Shoe Store in a small rural town of Springhill, Louisiana where there is no shoe store for 20 miles

Opening a Payless Shoe Store in a small rural town of Springhill, Louisiana where there is no shoe store for 20 miles

Executive Summary

“Payless Shoe Store” is run by James Lowie and is reputable of being honest, reliable and trustworthy. The business was incorporated in a small rural town of Springhill, Louisiana. “Payless Shoe Store” exists as a business with minimal competitive advantage based on being the only supplier of branded shoes around its vicinity, however has not been relatively profitable.

“Payless Shoe Store” has developed an adequate reputation as a supplier of footwear in a small rural town of Springhill, Louisiana where there is no shoe store for 20 miles.

Business Description and Ownership

”Payless Shoe Store” has been reputable for nearly 3 years where the date of establishment was exactly on the 20th of July 2010. As the name implies, “Payless Shoe Store” specialises in footwear, where it retails other branded shoes for the convenience of their customers.

“Payless Shoe Store” is a retail trade, which is a part of the tertiary sector. It is a small business and so contributes to more than 95% of the private sector, according to the Australian Bureau of Statistics (ABS).

The products include the top of the range sports and casuals, to, toddlers and adults footwear produced by popular brands such as Nike, Adidas, Royal Elastics and Windsor Smiths. The business tries the best they can to cater for the whole of their mass market. “Payless Shoe Store” relies on their good will of exceptional customer service in attracting loyal customers.

Legal structure

“Solely Shoes” is an unincorporated business, and is recognised as a small-medium enterprise (SMEs) of the private sector. Having up to 3 owners, “Solely Shoes” is classified as a partnership.

Situational Analysis

The business environment consists of both internal and external factors that have an effect on the way the business runs and decisions that need to be made. “Payless Shoe Store” faces the following factors when running the business:

Internal Factors

External Factors

shareholders

customers

suppliers

employees

operations

finances

marketing

government policies

competitors

population trends

weather/climate (affects how often people will go shopping)

The only competition that poses as a threat to the success of “Payless Shoe Store” within the location of Carnes Hill would be the shoe retailer “Payless Shoes”. However, there is a major difference between the products and customers who shop at “Payless Shoes”. “Payless Shoe Store” has more of a range of high quality, well-known branded footwear, which is reflected in the pricing of the products. Whereas, “Payless shoes” have a range of less popular footwear that are understandably cheaper, which is the main reason why the two retailers attract different customers. Other competitors that are not in the area of Carnes Hill that still pose as a threat are the highly recognised retailers such as “Paul's Warehouse”, “Athlete's Foot” and “Footlocker”(Acker, 2004).

Markets and Market share

“Payless Shoe Store” fits in the industry of retail trade, where specifically they retail in ...