Question

W ERNER What to (6 marks) Analyse one way in which a medium sind independent future retailer might be affected by a large national fume r peningastore in the same area Extra Sonce tutoru It Assessment

Answer 1

The impacts would be surely if the large retailer open a store in the same area of small retailer. The following will be the which will get affected.

The Price: The large seller has high investment and much more money than the small seller so he can se the furniture at low price in the beginning to attract the consumers.

The Customer Service: The National furniture will have better customer service just because they have more money.

The quantity.: The quantity and variety of products will be available at the large retailer.

Customers base: The customer base will be higher for national retailer. As they have lot of products available. But not in every case the small retailer will be in loss. Some middle class Economic group would never buy from big store as they will afford it later on. The small retailer must have his customer base as he is there for long time.

What important is the medium size retailer should make his strategies to tackle the national retailer.