Retail Stores Essay

338 WordsMar 14, 20142 Pages
Philippines as we all know has a free market economy. According to Econlib.org by Rothbard (2008), free market is a summary term for an array of exchanges that take place in society. Each exchange is undertaken as a voluntary agreement between two people or between groups of people represented by agents. These two individuals or agents exchange two economic goods, either tangible commodities or nontangible services. As witnessed by the researchers, plenty of businesses are started every day, but only few of them are able to maintain their existence in the business field. With the growing number of retail businesses and the “overstoring” of countries, the competitive advantage of one retail institution type over another is an important consideration in the evaluation of any retail changes. Competitive advantage is defined as “the distinctive competences of a firm and the factors critical for success within the industry that permits the firm to outperform its competitors. Advantages can be gained by having the lowest delivered costs and/or differentiation in terms of providing superior or unique performance on attributes that are important to customers” (Bennett, 1995, p. 52). Retailing is one of the most mature industries in our economy, and it’s constantly being reinvented with the advent of new technologies. Over the past twenty years, many new retail formats have been develop. Consumer now can purchase the same merchandise from a wider variety of retailers. This new type of retailers coexists with traditional retailers. Each type of retailer offers a different set of benefits. Thus, consumers patronize different retailers for different purchase occasions. The greater diversities of retail formats increases competition in the industry and also enables consumer to buy merchandise and services from a retailer who better satisfies their needs for the specific
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