The following are the risk factors that may cause fall in retail
operations and the corresponding measures to be taken to control
them-
- Economic Condition - To cushion our business from the
downtrends in Economy, we should maintain a diverse customer base
thus assuring business even if a segment of customers turns down
our business proposition. In addition to this, they can even add
e-commerce component, so as to complement their brick and mortar
business.
- Wrong Branding - We should appropriately plan and validate our
intended marketing communication. The communication should also be
reinforced in the mind of the customers by having the marketing
activity regularly and periodically. In addition to this, we should
also maintain a forum so that the customers can easily contact us
when needed.
- Supplier and vendors - We should also maintain relationships
with large network of suppliers and vendors, this shall provide us
with greater control over the inventory replenishment and
distribution channel. We may also possibly look into the option of
vertical integration and thus limiting the control of external
agencies and enhancing self dependence.
- Labor Market- Labor market undergoes frequent change and is
considered to be the costliest investment for a business. Thus, to
prevent arm-twisting by labor section, we should look forward for
having a right mix of contractual and permanent employees. In
addition to this, we should train them well to align them as per
our business need.
- Implementation & Maintenance of IT System - IT System has
not just remained a complementary thing to have but has become a
point of differentiation and competitiveness in the market. Thus,
to reap rich benefits out of the potentials of the IT systems, we
should strategize properly on how to implement and maintain the
system and hence avoiding its failures.
- Security Breach - With such a great quantity of sensitive
information available about our customers, we should keep the
hacker at bay by deploying appropriate level of data security
measures. We should also establish a well planned disaster
management procedure to contain such instances effectively.
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