Buying & Merchandising Project Essay Example | Topics and Well Written Essays - 3500 words

Buying & Merchandising Project - Essay ExampleIn propounding such a vision of capitalism, Schumpeter extrapolated the telephone line sample framework for competitive markets, stating capitalism, then is by nature a form or method of economic diversify (Schumpeter, 1942). Furthermore, Schumpeter argued that innovation was the see to success and natural selection in a capitalist state and Reinert refers to the fact that the term highlights how failure to be innovative in business results in a vicious clique where developing countries, lacking the necessary technological and institutional infrastructure, fall further and further behind (Reinert, 200411). Therefore according to Schumpeters model, capitalism is the central change embodied in technological advancement and innovation as a form of economic evolution (Aghion, P., & Howitt, P., 1992). From a retailing perspective, it is evident that proliferation of the multi-channel retailing substitution class as required retailers to innovate in order to maintain position in the marketplace (Levy & Weitz, 2008).Schumpeter further argues that internal innovation within a business operational framework produces lower costs, which in turn permits companies to sell products at lower prices, which is referred to as dynamic efficiency (Utterback, J. 1996). This in turn highlights a key element of Schumpeters model that competition for innovation as opposed to competition for customers is the most important, which arguably underpins contemporary multi-channel retail strategy (Diamond & Pintel, 2004).Innovation in the context of multi-channel retail strategy essentially becomes essential to effective capitalism, providing the foundation of dynamism in line with Schumpeters theory that the evolution and sustainability of a roaring business model is not dependant on how capitalism administers existing models, but rather with how it destroys them through creativity to survive long term outgrowth (Metcalfe, J.S. 1998 Lev y & Weitz,