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Essay / Research Paper Abstract
This 6 page paper looks at the different perspectives which may be adopted by a range of stakeholders when faced with the potential opening of a new superstore in their community. Written from an economic perspective the likely views of other shop keepers, customers, the unemployed local; government and the supermarket themselves are all explained.
Page Count:
6 pages (~225 words per page)
File: TS14_TEnewsuper.doc
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Unformatted sample text from the term paper:
that the merchants association will oppose the move. The shops in the case given are the only local outdoor shopping mall; this may make them an attractive shopping destination for
many shoppers who want the convenience of an outdoor shopping mall. With a number of different shops all in one location this increases the attraction with complementary shops/goods available in
one location. If the superstore opens nearby the shops/merchants will face effective competition and will loose customers to the superstore. As a result may face a significant decline in revenues
and profit, possibly to the point where the businesses no longer remain viable. The superstore will have many of the same
advantages as the outdoor mall, but in an even more convenient package were all shopping can be undertaken in a single basket and paid for in a single transaction. If
anything this will give the superstore a competitive advantage of convenience over the local stores. If the superstore has this advantage it is highly likely that customers will be attracted
away from the outdoor mall. A further disadvantage to the Merchants will be the ability of a large firm such as Wal-Mart to gain economies of scope and scale as
well as use their buying power to gain lower prices. As such the prices to the customers may be lower; this can give customers a further reason shop at the
supermarket rather than the local stores. However, there may be some advantages; the superstore may attract more customers into the area and
possibly increase passing trade. This may be leveraged if the outside mall and the shops are able to differentiate themselves in a meaningful manner. Increased employment will put more
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