Peer Market Study, Essay Example

The SMCA-TS store can build upon the popularity of the outlets in the Austin, Texas area. However, there is a great level of competition locally, ran by universities and non-profit organizations. The recommendation of the project management team is to review the individual strengths of competing stores and create a strategy that diversifies SMCA-TS on the marketplace, in order to target the right customers and create a greater awareness of the organization. The below review of competition will provide the management team with sufficient information on the market and competition level.

Located in an area of Texas that is popular among shoppers, and surrounded by other thrift, antique, and low cost units, the shop needs to diver sify itself on the competitive market. Its location is one of its strenghts. However, it is important that the organization creates a level of awareness about its operation. It is evident that there are several similar shops in the catchment area of the store. It is important that  SMCA-TS turns the excellent location to its advantage, and targets local shoppers. All the above analyzed shops do have online presence: most of them have a website, but the majority utilizes social media marketing and Google Plus pages to create awareness on the local market.  SMCA-TS, as well, has a Facebook page, but its social media engagement is much lower than competition’s. With only 49 likes on the Facebook page, and no regular posting, the shop is lagging behind other local stores in utilizing the power of social media and free local advertisement. Further, the reviews of the site on Facebook and the lack of social media implementation in the main site does create a disadvantage for the shop. Looking at the online presence of Goodwill Blue Hangar, for example, it is visible that the shop uses free online exposure, and their Facebook page states that 271 people have visited the store. This creates a level of awareness of the operation and free publicity. Bloggers create free advertising for the company, and being featured in one of the recent Guardian articles (Top 10 Thrift Shops in Austin, 2012) adds credibility and reputation. Therefore, looking at the strategies of the competing shops in Austin, it is important that  SMCA-TS starts diversifying itself on the competitive market by: offering more, improving customer service, creating promotions, and increasing its online presence through creating a greater level of social media engagement with target customers. Reputation management is another aspect, and some of the reviews of similar shops (especially Blue Hanger) state that negative shopping experience is a hold-back. Therefore, by creating a positive atmosphere and providing excellent customer service,  SMCA-TS can diversify itself in Austin, Texas.