The main objective of Shuzworld in opening a new store is to expand its market and also increase its profitability levels. This can only be realized by the company if and only if the company uses a clearly defined way of stocking the store. The demand patterns in the market and in specific in the specific market that the store is to be situated should be analyzed critically so as to come up with the optimal output which is desired from the store.
For a good output to be realized there must be a corresponding input from the management which ensures that the company is able to achieved the desired results from the store. Therefore, the store must be stocked with the products which best fits the needs of the customers which will in turn result to high sales.
However, a contentious issue which is a key determinant of the stores value of output is the location of the store. Several locations which have been put under consideration are the Standalone option whose projected profitability is $ 700,000 in a favorable market and a loss of $4000000 in an unfavorable market. The other possible location is Mall store option whose estimated profitability is $300000 in a favorable market and $50000 in an unfavorable market. Due to the growing business activities of the company, the latter option of the Standalone option is the best due to the maple space of the store.
A logical analysis technique must be used by the management in order to make the best decision regarding the new store. A logical technique used the facts on the table and with consideration to the facts leads to the making of an informed decision (Ashan 2011). The decision of the location of the store must go hand in hand with the analysis of the market. For the store to make economical sense, it must be able to sell Shuzworld’s products hence translating to profitability. With a well coordinated market analysis, the company will know which shoes to stock and display in the store and why to choose certain products over others. The right analysis will lead to the store placing itself in a favorable market hence nearing or even exceeding the estimated profit level.