in many places, large chain stores are taking over the market place, making it impossible for small businesses to compete with them. what are the advantages and disadvantages of this situation.

In some countries, large companies are developed which are taking over their marketplaces. It is leading small
businesses
to not be able to compete with them. In
this
situation,
however
, expansion might have some benefits
such
as allowing consumers to get the
products
easily
while
it can make an uncompetitive environment for small
businesses
. Nowadays, large stores create the possibility to buy a number of
products
in the same place without spending much time. These possibilities provide merits to consumers to purchase yet cheap and good quality
products
without having to search for different
products
in different places which could be located over long distances. Having a wide selection range of
products
sold in one big store can reduce the cost of store rent and employees which can allow these companies can allow customers to buy
products
at very costly.
For example
, Hypermart one of the biggest retail companies in Indonesia could offer consumers a number of daily goods like dairy and others even electronics.
In contrast
, as regards drawbacks, because of large businessesbusinesses, it can create an unhealthy environment for small
businesses
which may result in to increase in their closure figure . The local business that does not have the ability and plan to compete with large chain stores will lose their loyal customers, or even worse their profits could drop in the future.
Moreover
, their incapacity to offer lower prices than large retailers could be a failure to attract more buyers and keep their growth steady. In summary, the large chain stores that control the market system may give some positives to people which allows them to buy numerous
products
at lower prices.
However
,
as a consequence
of
this
situation, the monopoly in the economic system of the country can be extremely harmful to small
businesses
causing them to liquidate
Submitted by ru.kabiru.biru on

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