The questions following this scenario will all apply to this…
The questions following this scenario will all apply to this scenario and will be worth 5 points each. Luke’s Locker seemed to be a thriving business, focused on selling running shoes and apparel, as it grew to 8 locations around Texas, including a large store in central Austin. They were known for their large selection of high-quality running shoes, diverse apparel styles to suit all types of fashion preferences, and extremely knowledgeable staff that could serve as helpful running consultants. Early in 2016, though, the company shut down the Austin store, along with 5 other stores, with no warning. The company’s CEO, Matt Lucas, said in the statement that the store’s business had been impacted by the “(1) over distribution of fitness related products into many retail competitors, (2) lack of innovation of shoe design in the 3 years prior to their closing, and (3) the extreme price competition created by Amazon (including Zappos.com) and many other low-price online retailers.” The company is focused on their 2 remaining stores as they try to create a new strategy to capture more of the running market that seems to be growing in every age segment, thanks to early-start programs, such as Marathon Kids. I was super bummed to hear about the closures, as I had grown to appreciate the store’s involvement in the local running scene. A few months after the store closed, I decided it was time to buy a new pair of running shoes when I realized that the soles of my feet were feeling a bit sore after each run. Each time I buy new running shoes, I go through this whole process of asking friends for their suggestions, reading recent articles about the latest trends in running shoes, and reading/watching online reviews for various shoe styles and brands. The data I gather on each includes price, fit, sole support, brand reputation, and style (can’t have ugly shoes). After I gather data on each, I generally narrow down all of the options to just 2 or 3 specific shoes, and then choose a store where I think I’ll be able to try on the final 2 or 3 options. Ultimately, I make a decision to purchase in the store or go back to an online retailer where I saw them previously, then get excited to wear the new shoes, imagining how much faster and stylish I’ll be in them.