RETAIL BUSINESS ENVIRONMENT

RETAIL BUSINESS ENVIRONMENT

Ms Rosmin Iqbal HussainBoptom (UKM), CMBA (UNIMAS)

Ms Rosmin Iqbal HussainBoptom (UKM), CMBA (UNIMAS)

OPPORTUNITYOPPORTUNITY

Choices of CareerChoices of Career

Private practicing optometrist Commercial setting

Chain groups / optical outlet Multidisciplinary hospitals / clinics

Pvt / govt Eye clinics / hospital practices

Under ophthalmologist University Hospitals / Clinics LASIK centre Armed forces Education / Academia

Private practicing optometrist Commercial setting

Chain groups / optical outlet Multidisciplinary hospitals / clinics

Pvt / govt Eye clinics / hospital practices

Under ophthalmologist University Hospitals / Clinics LASIK centre Armed forces Education / Academia

National Eye Survey, NES (1996)All Ages

•Prevalence of visual impairment : 2.73% ( 581,878 people)

•Prevalence of blindness : 0.29%(64,262 people)

•Prevalence of low vision : 2.44%(517,616 people)

National Eye Survey, NES (1996)All Ages

• Causes of Visual Impairment :Refractive Error – 44%Cataract – 36%Retinal Disease and Glaucoma – 7%Corneal Opacity – 3%Others – 10%

Refractive Error Study in Children (RESC) 2003

•Population based study on refractive error - by Selayang Hospital & WHO in Gombak•School children aged 7-15 years•Prevalence

Blindness –1 in 1000 children ( 0.1%) Low vision- 1 in 10 children (10%)

•Causes Refractive error – 89% Amblyopia / lazy eye – 3%

RESC : Unmet Need For Spectacles

•Up to 50% of children have uncorrected refractive error but :

did not have glasses ( 43.9%) glasses with inaccurate power ( 6.8%)

•Why children with refractive error do not get corrective glasses ?

barrier to refractive services financial problem children unaware parents or teachers unaware

Ophthalmic MarketOphthalmic Market

Total estimate of Optometrists: 1000 Opticians: 3000

Almost 80% of those with visual disorder would come to an optometrist / optical outlet

Even the other 20% would come to an optometrist with extra services Low vision Vision therapy

• with retinal diseases / multiple disabilities

**still a lot of opportunities present

Total estimate of Optometrists: 1000 Opticians: 3000

Almost 80% of those with visual disorder would come to an optometrist / optical outlet

Even the other 20% would come to an optometrist with extra services Low vision Vision therapy

• with retinal diseases / multiple disabilities

**still a lot of opportunities present

BUSINESS PRACTICESBUSINESS PRACTICES

Types of BusinessesTypes of Businesses

Type of BusinessType of Business

Sole ProprietorSole Proprietor

PartnershipsPartnerships Pvt Limited / Pvt Limited / LimitedLimited

Groups / Groups / Chain-StoresChain-Stores

**Services offered at practices add to product differentiation, customer loyalty & competitive advantage

**Services offered at practices add to product differentiation, customer loyalty & competitive advantage

Services OfferedServices OfferedContact lensContact lens

Vision TherapyVision TherapyPre / Post Surgical Pre / Post Surgical CareCare

Low VisionLow Vision

DispensingDispensing

PretestsPretests Power & Power &

parameters & parameters & types types identificationidentification

Fitting Fitting After careAfter care

PretestsPretests Power & Power &

parameters & parameters & types types identificationidentification

Fitting Fitting After careAfter care

Tinting Tinting Edging Edging Coating Coating AdjustmentsAdjustments Outsource ??Outsource ?? In-house ??In-house ??

Tinting Tinting Edging Edging Coating Coating AdjustmentsAdjustments Outsource ??Outsource ?? In-house ??In-house ??

TestingTesting ConsultationConsultation LVAidsLVAids TrainingTraining ReferralsReferrals

TestingTesting ConsultationConsultation LVAidsLVAids TrainingTraining ReferralsReferrals

Adults / pediatricAdults / pediatric BVBV

• Acc / verg / ocular Acc / verg / ocular motormotor

• PatchingPatching• Anti-suppressionAnti-suppression• PrismsPrisms

Adults / pediatricAdults / pediatric BVBV

• Acc / verg / ocular Acc / verg / ocular motormotor

• PatchingPatching• Anti-suppressionAnti-suppression• PrismsPrisms

Refraction of pathologic Refraction of pathologic eyeeye

Rx -operation date far (Pt Rx -operation date far (Pt need)need)

Post surgical carePost surgical care• RefractionRefraction• CL / glassesCL / glasses• Periodical reviewsPeriodical reviews• ConsultationConsultation

Refraction of pathologic Refraction of pathologic eyeeye

Rx -operation date far (Pt Rx -operation date far (Pt need)need)

Post surgical carePost surgical care• RefractionRefraction• CL / glassesCL / glasses• Periodical reviewsPeriodical reviews• ConsultationConsultation

BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT

IntroductionIntroduction A business does not function in a vacuum It has to act and react to what happens

outside & inside the office walls These factors that happen within the

business are known as Internal factors or influences External factors or influences

**These will affect the main internal functions of the business and possibly the objectives of the business and its strategies

A business does not function in a vacuum It has to act and react to what happens

outside & inside the office walls These factors that happen within the

business are known as Internal factors or influences External factors or influences

**These will affect the main internal functions of the business and possibly the objectives of the business and its strategies

Business Analytical Framework

Business Analytical Framework

Internal

SWOT Analysis FrameworkSWOT Analysis Framework

Business Environmental Scan

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

SWOT Matrix

Business Environmental Scan

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

SWOT Matrix

SWOT AnalysisSWOT Analysis

Strength Weakness Opportunities Threat

Provides information that assists in matching business practice resources and capabilities to the competitive environment in which it operates

Strength Weakness Opportunities Threat

Provides information that assists in matching business practice resources and capabilities to the competitive environment in which it operates

INTERNAL

EXTERNAL

INTERNAL ENVIRONMENTINTERNAL ENVIRONMENT

S - StrengthsS - Strengths Are a biz’s resources & capabilities to develop

competitive advantage Patents of products

Frames / lenses / glasses / CL Strong brand names

Chain stores Frames / lenses / glasses / CL

Good reputation among customers Extra after sales services Exclusive access to high grade products Favorable access to distribution networks

From supplier To customers

Are a biz’s resources & capabilities to develop competitive advantage

Patents of products Frames / lenses / glasses / CL

Strong brand names Chain stores Frames / lenses / glasses / CL

Good reputation among customers Extra after sales services Exclusive access to high grade products Favorable access to distribution networks

From supplier To customers

W - WeaknessesW - WeaknessesAbsence of strengths are viewed as

weaknesses Lack of patent / brand protection A weak brand name Poor reputation among customers High cost structures Lack of access to the best

products/resources Lack of access to key distribution channels

Absence of strengths are viewed as weaknesses

Lack of patent / brand protection A weak brand name Poor reputation among customers High cost structures Lack of access to the best

products/resources Lack of access to key distribution channels

Factors of Internal Environment

Factors of Internal Environment

Identifying, developing, protecting, and deploying Resources Capabilities Core competencies

Identifying, developing, protecting, and deploying Resources Capabilities Core competencies

ResourcesResources

Resources are inputs into a firm’s production process such as capital equipment, skill of individual employees, patents, finance, and talented managers Tangible Resources – Assets that can be seen and

quantified Intangible Resources – Family commitment,

networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights

***By themselves, resources do not create a strategic advantage for the firm

Resources are inputs into a firm’s production process such as capital equipment, skill of individual employees, patents, finance, and talented managers Tangible Resources – Assets that can be seen and

quantified Intangible Resources – Family commitment,

networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights

***By themselves, resources do not create a strategic advantage for the firm

CapabilitiesCapabilities

Capacity to deploy resources that have been purposely integrated to achieve a desired end state

Primary base for the firm’s capabilities is the skills and knowledge of its employees

Just because the firm is strong in deploying resources does not mean it has a competitive advantage

If there are two identical practices but one is doing better than the other, it is the capabilities of the managers to use and to make the right short and long-term decisions about the allocation of resources to the various pursuits of the company that likely makes the difference

Capacity to deploy resources that have been purposely integrated to achieve a desired end state

Primary base for the firm’s capabilities is the skills and knowledge of its employees

Just because the firm is strong in deploying resources does not mean it has a competitive advantage

If there are two identical practices but one is doing better than the other, it is the capabilities of the managers to use and to make the right short and long-term decisions about the allocation of resources to the various pursuits of the company that likely makes the difference

Core CompetenciesCore Competencies

Resources and capabilities serve as a source of competitive advantage for a firm over its rival

Not all resources and capabilities are core competencies

Many suggest that firms should identify and concentrate on only 3 or 4 core competencies

Resources and capabilities serve as a source of competitive advantage for a firm over its rival

Not all resources and capabilities are core competencies

Many suggest that firms should identify and concentrate on only 3 or 4 core competencies

Identifying & Building Core Competencies

Identifying & Building Core Competencies

Core competencies must be distinctive. Capabilities that are done better than competitors

Identifying core competencies is key to development of sound strategy

Core competencies are valuable to customers, that is, the things that your company does better than anyone else, someone else must be willing to pay for else you are simply good at something but it does not create long-term success of the company

Core competencies must be distinctive. Capabilities that are done better than competitors

Identifying core competencies is key to development of sound strategy

Core competencies are valuable to customers, that is, the things that your company does better than anyone else, someone else must be willing to pay for else you are simply good at something but it does not create long-term success of the company

External Environment

External Environment

O - OpportunitiesO - Opportunities

The external environmental analysis of competitors weakness may reveal certain opportunities for profit & growth

An unfulfilled customer need Arrival of new technologies / machines /

equipments / products Loosening of regulations Removal of international trade barriers

Lower cost / taxes

The external environmental analysis of competitors weakness may reveal certain opportunities for profit & growth

An unfulfilled customer need Arrival of new technologies / machines /

equipments / products Loosening of regulations Removal of international trade barriers

Lower cost / taxes

T - ThreatsT - ThreatsChanges in external environmental may

present threats to the biz Shifts in customer’s tastes away from the

firm’s products Emergence of substitute products to

those offered by biz practice Better Q / cheaper / more function

New regulation Optical acts loosened eg

Increased trade barrier

Changes in external environmental may present threats to the biz

Shifts in customer’s tastes away from the firm’s products

Emergence of substitute products to those offered by biz practice Better Q / cheaper / more function

New regulation Optical acts loosened eg

Increased trade barrier

External Environment Factors

External Environment Factors

Demographic EnvironmentDemographic Environment How consumers, households and communities

behave and their beliefs For instance:

Changes in attitude towards health & eye care Increase awareness on visual needs, therapy and

examinations Changes in education importance: more readings /

eye muscle stress A greater number of pensioners in a population:

increase in presbyopes A sudden “baby boom”: decrease mortality rate &

premature babies living gives rise to ROP? EtcMore pediatric Pts

How consumers, households and communities behave and their beliefs

For instance: Changes in attitude towards health & eye care Increase awareness on visual needs, therapy and

examinations Changes in education importance: more readings /

eye muscle stress A greater number of pensioners in a population:

increase in presbyopes A sudden “baby boom”: decrease mortality rate &

premature babies living gives rise to ROP? EtcMore pediatric Pts

Political & Legal Environment

Political & Legal Environment

The way in which legislation in society affects the business Changes in employment laws on working hours Changes in optical laws & enforcement of

practicing professional: optician VS optometristCL practiceRefractive practice

How changes in government policy might affect the businessGovt’s decision to create a national healthcare

insurance plan inclusive of Visual Therapy(as in Europe)

The way in which legislation in society affects the business Changes in employment laws on working hours Changes in optical laws & enforcement of

practicing professional: optician VS optometristCL practiceRefractive practice

How changes in government policy might affect the businessGovt’s decision to create a national healthcare

insurance plan inclusive of Visual Therapy(as in Europe)

Economic EnvironmentEconomic Environment How the economy affects a business in terms of

Taxation of company reduces profit Government spending increases more money in the

market, more consumer spending General demand increase / decrease for offered

products/competitors products/substitute products Interest rates increase/decrease causes higher rates for

bank loans for biz start-up or expansion Exchange rates increase/decrease influences imported

products prices European and global economic factors contagious

effect / supplier effect

How the economy affects a business in terms of Taxation of company reduces profit Government spending increases more money in the

market, more consumer spending General demand increase / decrease for offered

products/competitors products/substitute products Interest rates increase/decrease causes higher rates for

bank loans for biz start-up or expansion Exchange rates increase/decrease influences imported

products prices European and global economic factors contagious

effect / supplier effect

Technological EnvironmentTechnological Environment

How the rapid pace of change in production processes and product innovation affect a business Keratoconus lens: Rose-K New CL: higher DK value

Old stock?? (wat happens) Better improved lens design M/Focal Better, precise equipments Cheaper Quality products: increase in economies

of scales Replacement of petrol: cheaper transportation cost

How the rapid pace of change in production processes and product innovation affect a business Keratoconus lens: Rose-K New CL: higher DK value

Old stock?? (wat happens) Better improved lens design M/Focal Better, precise equipments Cheaper Quality products: increase in economies

of scales Replacement of petrol: cheaper transportation cost

Social / Ethical Environment

Social / Ethical Environment

What is regarded as morally right or wrong for a business to do Should it have biz dealings with suppliers

that go into retail biz & sell own products cheaper

The business also needs to be aware of their social responsibilities. These are the way they act towards the different parts of society that they come into contact with• LV Pt / customers from the lower group income

What is regarded as morally right or wrong for a business to do Should it have biz dealings with suppliers

that go into retail biz & sell own products cheaper

The business also needs to be aware of their social responsibilities. These are the way they act towards the different parts of society that they come into contact with• LV Pt / customers from the lower group income

Changing External Environment

Changing External Environment

Markets are changing all the time How a business needs to react or lose customers Some of the main reasons why markets change

rapidly Customers develop new needs and wants: UV SGlasses New competitors enter a market New technologies mean that new/improved Q products A world or countrywide event happens e.g. global

economic slump Government introduces new legislation e.g. increases

minimum wage

Markets are changing all the time How a business needs to react or lose customers Some of the main reasons why markets change

rapidly Customers develop new needs and wants: UV SGlasses New competitors enter a market New technologies mean that new/improved Q products A world or countrywide event happens e.g. global

economic slump Government introduces new legislation e.g. increases

minimum wage

BREAK TIME!BREAK TIME!