The Euro, Opportunity at Its Best.
The upcoming change in currency to Euros will change how organizations conduct their business in many European nations. As general manager of a clothing company I am particularly interested in how it will affect the clothing industry in Spain. Some of the challenges for obtaining a sustainable competitive advantage will include product differentiation, consolidation within the supply chain, and brand image.
When forecasting how exactly the single currency will effect business in general, including the clothing industry, one must look at repositioning itself in the marketplace. Given the fact that many customers may not trust a company to make fair conversions, fearing manipulation of rounding up to benefit the retailer, this would be a great way to reposition a company's image. One way to do this would be to simply make all transactions explicable to the customer. This can be achieved by not only having simple transaction methods translating the conversions, but to also have sales representatives that are knowledgeable of the transaction conversions to help the customers.
Furthermore, if a company can help confused customers with these new transactions it may be successful in repositioning itself as a viable, trustworthy retailer.
The Euro may seem to be very taxing for businesses and their product prices throughout the union. The customer's access to product prices across these countries could emit fierce competition over prices. However, if a company can differentiate its products to gain a competitive advantage to achieve brand loyalty, they may be able to succeed against the driving force of cost reduction.
Although the customers have an effect on price reduction for the retailer due to the change in currency, the retailer also can gain price reduction on its products the same way through its suppliers. To be successful with...