Many small local shops are closing as they are unable to compete with large supermarkets in the area. How does this affect local communities? How could this situation be improved?
In modern society, competition between small markets and large supermarkets has been a center of heated discussion to the public as well as the government. A number of local stores are closing due to the large supermarkets’ attracting marketing and reasonable prices. This phenomenon can affect to the monopoly of large supermarkets and it should be solved in terms of the government.
First of all, since the large supermarkets promote with the huge budget, small local shops might close their business and it leads to the monopoly of the big supermarkets. This is because it basically has huge gap of money between small and big companies so small shops cannot afford attractive marketing like large companies use. As a result, many small business’s owners should close their business and lose their jobs. In the market, the monopoly of something is quite risky because they can break the proper price since they do not have any competitors.
This dangerous phenomenon can be solved in terms of the government. The government should regulate the balance between small and large shops. For example, some countries limit the days of opening the supermarkets that they cannot run in certain days so this plan attracts customers to go to local shops. In addition, in some countries, the government spread cards which can be used only at the local shops in a lower price than supermarkets.
To sum up, it is hard to maintain the small business with the large shops these days. This unbelievable circumstance can cause the fact that the large companies can control the prices without competitors. Therefore, it should be resolved by the government that promoting customers to go to the local shops.