Create a 6 page essay paper that discusses The Shoe Shop.
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The shoe industry, together with the apparel and accessories sectors posts increases in total turnover in the past year which shows the increasing demand and market for these products. The creation and operation of The Shoe Shop which will commence on January 2008 is another quest to provide products for this profitable market.
The price of shoes in London is highly dependent on the strategies employed by the different industry players (BFA 2007). Business organizations which employ differentiation and niche strategies enhance the image of their brands by putting a high margin in their shoe products. A good example of this is Russell and Bromley where a pair of women’s shoes can cost up to ‘200.00 (Russell and Bromley 2007). On the other hand mid-priced companies charge from ’40 to ’90 for a pair of shoes. Shoe manufacturers who are utilizing cost leadership strategies can price more competitively at less than ’30. Ben Sherman can price as low as ’15 for a pair of women’s shoes. These pricing strategies of the competitors in the market together with the survey conducted to determine the target consumers’ preferences become the primary bases of The Shoe Shop’s proposed pricing strategies.
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