STRATEGY AND CHANGE IN THE GLOBAL ENVIRONMENT

Strategy and Change in the Global Environment

Strategy and Change in the Global Environment

Introduction

Daiso is one of the premier retailer franchises within the Malaysia to begin; Daiso is one of the nation's largest and well known department store chains. It started over 150 years ago; Daiso has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Daiso has earned huge profits with same store sales, with increasing 8.3% year to date. During the month of February in 2012, store sales increased by 6.6% (Daiso, 2012). Daiso is projecting the increase of profits for its underlying business operations during the year of 2012. Even though Daiso has experienced success with both its assortments and brand, its competitors haven't fared so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011). Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. Daiso, with its ride array of assortments and products continues to grow as it attempts to capture market share from failing competitors. Daiso operates in a unique market demographic as the company occupies a unique niche market that appeals to young, fashionable, and trendy consumers (Product Category, 2012).

Discussion

Key Drivers of Change and Economic Trends. What Is Causing The Strategic Realignment Of Daiso?

The shopping experience for the typical Malaysian has changed dramatically over the last few years. Due to economic circumstances plaguing both the global and domestic economy, shoppers are now more apprehensive about their purchasing behavior. Likewise, other economic circumstances such as the decreasing trend of the average Malaysian income are also contributing to the extreme bout of pessimism the nation is currently experiencing. Shoppers today are attempting to save money and foregoing luxury purchases, until they feel secure in accumulation of sufficient finance (Shaw 2011).

Malaysian shoppers are apprehensive towards their future, and undergo the feeling of saving for their future that is for their retirement or save adequate amount of capital in the event following the long term unemployment. This demonstrates the shopping behaviors of Malaysian buyers, the extreme bouts of pessimism within the overall economy today. Shopper's behavior changes almost exclusively due to the prevailing economic uncertainties due to world recession and economic trends. This is indicated by the cyclical nature of the retail. During periods of mass euphoria, individuals indulge in purchasing of goods and services; therefore, economy demonstrates the continuing increasing trend. Shoppers during the period of economic stability are not concerned about short term economic uncertainties, and indulge in buying or goods and services, which they might have not purchased, since their jobs are believed to be secure due to efficient running of the economy. These products include luxury items or products that add value to the better quality of life and living ...