Visiting Lecturer Program (18)

 Speaker:  Baabak Ashuri
Doctoral Student and Tennenbaum Fellow in the School of Industrial and Systems Engineering at the Georgia Institute of Technology, USA

Local Organizer: Keyvan Vakili

Title: A Real Options Approach to Investment Decisions in Competitive, Dynamic Retail Markets

Time: Wednesday, Aug 22, 2007, 18:00-19:30
Location: Department of Industrial Engineering, Sharif University of Technology, Tehran

Abstract:

The proliferation of retail outlets with nearly identical product offerings and similar costs due to market efficiency means that even slight differences in market location, a long-term fixed investment, can have a significant impact on market share and profitability. In this presentation, we look at retail market analysis from a theoretical investment perspective to overcome some of the limitations of marketing research. The objective of this paper is to present an integrated investment model that can be used to explain retailers’ behaviors in competitive, dynamic markets. This option-based model is used to show how small discount retailers invest early in developing markets. This research will contribute to investment analysis body of knowledge by applying real options approach into a new domain: retailing. In addition, it will contribute to investment practice in retail markets and have some interesting managerial implications by providing additional supporting evidence to decision makers regarding the consequences of their decisions.

Video                  Presentation               Pictures