Question:Due to the development and rapid expansion of supermarket in some countries many small, local business are unable to compete. Some people think that closure of local business will bring about the death of local communities.
To what extend do you agree.
Answer:
Over the past few decades, rapid development has been seen in supermarkets. These marts mostly provide products on economical rates, so some argue that local businessmen cannot compete them and become bank corrupt. I do not agree with this argument because community specific products are mostly not available in supermarkets and these marts are not easily accessible.
Costumers of super market may argue that specific community related products might not be available in the supermarkets. These marts offer products that have high sales volume with low profitability, and such products to not fit in this criteria. For example, in New Zealand many super store chain exist, but these chains do not provide products that relates to specific communities such as Hindus and Muslims on their religious events. This limitation of super store provides opportunity for local community base stores to flourish, so death of local community business is not possible, though they have to compete on different common products.
Furthermore, access to these super marts is not easy for many potential customers. In big cities traffic is a big problem and people use to visit these super mart once in a week or so. Therefore people use to shop form their nearby stores for every day utilities. For example, in Karachi city people have to drive considerable distance for shopping in superstores, and this could be possible once in a month. Other products for daily use are fulfilled through local suppliers. Thus customers can save precious amount of time.
To sum up, though supermarkets provide products on economical prices, it is difficult to manage every product utilize by different communities. Therefore, community business will not die, however, it increases the competition on products offer by both markets.
Please analyze thoroughly.
Thanks for the contribution in this regard.