at least 3 disadvantages of chain store (i.e. Marks&Spencer)

at least 3 disadvantages of chain store (i.e. Marks&Spencer)

Update:

and give reasons.... please... that can apply in m&s this case

2 Answers

Rating
  • 1 decade ago
    Favorite Answer

    Disadvantages of chain store [CS] :-

    1. [CS] : Inflexible to competitions and not responsive to business changes

    2. [CS] : Higher start up costs and overheads

    3. [CS] : More difficult to build customer relations with local consumers

    4. To the community, chain store limits the consumers from having more choices

    5. To the community, chain store expel rival retailers and gradually monopolises the consumer market (eg. Wxxxx & Pxxxxx Supermarket as well as Mxxxxxxd fast food chain restaurant)

    ### others pls do NOT copy my reply

  • 1 decade ago

    Three disadvantages to producers or providers with sole proprietor store

    1. Comparatively low responsive to an ever changing market environment i.e. customers’ taste & rivals’ reactions and competitions

    2. Fancy products & processes are likely not found because its manufacture must be by mass customization

    3. High financial risk when encountering economic downturn that would force to a) do heavy sales promotions, i.e, buy 3 get 2 free; b) cut certain no. of stores for reduction of direct operating cost—rent cost, however extra cuttings would lead to unbalancing of the indirect operating cost—administrative expense of all , i.e. facilities—warehouse & administrative office, inventory, administrative staff and also the cost of marketing program, all in an inefficient scale

    Of course there are many other disadvantages that let you may think of.

    Three disadvantages to consumers who buy products from chain stores

    1. It would express low identities & personalities perceived by their peers.. i.e, apparel buyers of Esprit, Bossini, Giordano and G2000, who are likely wearing their uniforms or basic garment

    2. Unlikely receive much caring and greeting of kindness from salespersons of chain stores.

    3. Products are likely not unique that there are not many choices of color, sizes, styles and fittings, or can be said it is low adaptability.

    Above answer would be suitable to a case study of M&S, the apparel chains.

    2007-10-10 18:41:02 補充:

    M&S is a big department chain, which expresses low responsive & low flexible to react economic downturn, customer tastes changes & competitors react.

    2007-10-10 18:41:32 補充:

    i) Mass quantity customization requires long production lead time-6month each season-or in 1-1.5 new product cycles, products easily become obsolete. While Zara could operate every 2 weeks new product development cycle with small quantity per style

    2007-10-10 18:42:03 補充:

    ii)The shop mall, Pacific Place considers its mall is appropriate to luxury goods, and used to expel M&S by Zara instead because of low trendy styles of M&S.

    2007-10-10 18:42:43 補充:

    iii) M&S would have raised withdrawal its Far East retailing

    Source(s): own writing
Still have questions? Get your answers by asking now.