Posco, a limited-service retail chain with 130 stores across the country, is seeking to improve its standing in the market

Since its operations are widespread, altering the store atmosphere significantly is not feasible because of the costs involved. Similarly, upgrading the stores to full-service retail chains would require a large investment of time, effort, and employee training. Assuming that many of Posco's private-label brands are bringing in large revenues, what strategy could Posco Retail use to differentiate itself while matching target shoppers' expectations?

(Students' answers may vary. The answer given below is indicative.)
Posco Retail should use its product assortment to differentiate its stores while matching target shoppers' expectations. One strategy is to offer merchandise that no other competitor carries, such as store brands or national brands on which it holds exclusive rights. Posco Retail has private-label brands that are doing well in the market and the company should capitalize on them. While the services mix and store atmosphere can also help set one retailer apart from another, these measures are not feasible in the current situation for Posco Retail.