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Competitors were more deeply entrenched than their research had shown, and reduced earnings forecasts combined with declining operating margins were the sell signal for many investors in the company. Also, the need to upgrade their IT infrastructure to support expansion in its California base market was the second company downfall. The following is a summary of the company strategy:
1. Focus on brand name consumables.
2. Broad selection of regularly available merchandise.
3. Attractive and well-maintained stores.
4. Strong supplier relationships.
5. Focus on larger stores and wider demographic of value-conscious customers...
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