ABSTRACT
This chapter discusses and illustrates Porter’s theory with several applications in the area of retail. Porter researched a large number of industries and companies during the empirical testing of his theory in the context between the level of profitability and the size of the company. Competition plays a major role in retail: ‘retail is war’. The purpose of the analysis of the competitive environment is to gain insight in that part of the overall competition that belongs to the relevant competition, namely the suppliers that compete directly with their own formula. In practice, the competitive environment matrix seems to be readily applicable in retail. However, a number of translation steps need to be Competitive environment matrix taken. One of the methods developed in order to measure own performance and very suitable for comparing with the relevant competition is the Net Promoter Score (NPS). The basic idea behind the NPS-method is that promoters ensure an increase in the added value.
