Professional Documents
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Channel Issues
Channel Issues
Channel Issues
Course/Section: MARKMAN-2A
Yes, from a competitive standpoint, such outcome is inevitable. These giant retailers such as
Toys "R" Us & Home Depot have successfully built a significant advantage over other retailers in
the market and often also provide fierce competition that small retailers are unable to survive
are forced to close in those situations. Big retailers can offer to customers a value that small
retailers cannot offer for a long term and also they can even offer goods at a cheaper price that
smaller retailers can't compete.
Is it really the big guys driving the little guys out of business or is there something more fundamental at
work here?
There something more fundamental at work here. The "Little guys" are unable to deal with force
such as the competitive environment formed by the "Big guys." "Little guys" cannot strategically
act on economic problems, whereas "big guys" can act on strategically unstable economic
environments due to technological growth and a huge capital flow of money.