Sample Essay

Cannibalization refers to the tendency of market share sales revenue or volume of one store declining as a result of the introduction of another store by the same corporation. This is not the only form of cannibalization but it is the most relevant in this case.

In terms of my own analysis in terms of cannibalization the best venture to undertake would be the barn. This is because it is between 80 and 90 miles away from the nearest target store. This means that the store will most definitely not cause any drop in sales of any target store or super center.

Store sensitivities

Store sensitivities refer to how stores operations vary given certain changes. These may include changes in the cost of the building as compared to the prototype. It may also include changes in demographics as well as changes in the value of the investment. Based on this aspect the barn appears to be the least sensitive to variations. As a result this is the best venture to adopt.

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