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Whether large supermarkets are more competitive than a small corner shop

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Introduction

BUSINESS STUDIES This coursework I will look at whether large supermarkets are more competitive than a small corner shop. A large supermarket is judged by the size of its labour force, turnover and capital employed. Large supermarkets are usually more successful because of the economies of scale. Some of the economies of scale a firm can gain, as it grows larger. These internal economies of scale are called Technical, financial, managerial, marketing, buying and risk-bearing economies. Large firms can buy larger and more efficient machinery and equipment and this means a firm can produce more at a lower price. Large firms can take advantage of production lines and divisions of labour. It's cheaper for a large firm to store and transport goods in large warehouses and lorry's that hold twice as much as smaller firms. ...read more.

Middle

Home delivery is a service run by the supermarket for people who can't get to a supermarket but can still be able to buy goods from them. Also they have access for the disabled to make shopping as easy as possible. At the supermarket you can withdraw money from your account by using the cash machines that are provided. In the supermarket you can use your credit card to pay for your goods at the checkout instead of using cash. Supermarkets have a large variety and selection of goods for customers to choose from. The large turnovers that supermarkets have go towards advertisement on television, in the newspaper and magazines to attract customers to shop at their stores. Also some supermarkets are open 24 hours a day. The disadvantages of supermarkets are that they can be very busy. ...read more.

Conclusion

Most corner shops specialize in certain products that you can't get in the supermarket this is good if you need any specialized products you don't need to far to get them. The disadvantages of corner shops are they don't have a large variety of goods like a larger firm does. They also don't have facilities like a car park or toilets and you can't pay by credit cards so if you don't have any cash you wouldn't be able to use a smaller firm. The prices of their goods are higher in price than in supermarkets. From the result of my questionnaire I have found out that: People prefer to go to the supermarket. People go to the supermarket for the value of the products The main advantage of a corner shop is the distance you have to travel. The disadvantage of a corner shop is the price of products. The disadvantage of a supermarket is the distance you have to travel. ?? ?? ?? ?? Jordan Lawrence ...read more.

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