Advantage and Disadvantages of Different Retail Business

1242 Words Jan 29th, 2013 5 Pages
Retail Management 3rd assignment
Rahul Nakarmi
Silver Mountain Graduate Business School
Retail Management, Semester 5
Sachin Karanjit
Feb 11, 2013

Advantages and disadvantages of different retail business
There are various forms of retail and among them classification based on ownership seems quite popular. There types based on this are independent, chain and franchise retailer. Personally the example of independent retailer (small retail outlet) is one near my house which owned by a Gurung couple and is a small store that sells variety of food products from vegetables to small candies such as coffee bite and so on. The major advantages of them in view are that they can control over whole management of the store such as planning,
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Finally the most important advantage of it is that per unit cost become less costly because some financial help or any other help is given usually by franchisor.
However, it does come with it s own disadvantages as well. The most common one is that the terms or condition by the franchisor is set to high to meet and thus, making it problematic for the franchisee. There is also the case of over saturation meaning the hype is there but only for a certain time but after some time staleness begins to occur. Furthermore, “the royalties” are based on sales and thus, profits became very less or non-existent if the required sale figure is not met. Finally, the contract can be terminated as per the wish of the franchisor.
The above mentioned advantages and disadvantages of mentioned organizations hold mostly true for most individual retailer, chain retailer and franchisor. Although all seems to be appropriate, if one has to open any sort of such business then the disadvantages or probable disadvantages of opening it should also be understood.
My decision making process regarding my chosen product
The product that I have recently had craving for was apparel that was a jacket but more particularly for summer as heat is slowly rising up. The material may be of cotton or any other product that is good for such a season. For such a quest I ventured out to my favorite
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