Question

The owner of a small hardware store-the only one in a medium –sized town in the mountains-has just learned that a large home improvement chain plans to open a new store nearby. How difficulty will it be for the owner to plan for this new competitive threat? Explain your answer

Answer 1

The small store can specialize in service that's not available in a large chain store. Our local hardware store has employees who greet customers and help them find what they need -- even if it's only a few small screws. After our recent ice storm that knocked out a lot of electric power, this store used its generator to keep it open to serve customers.

Answer 2

One thing that has happened in some small towns is the big stores are met with resistance if they try to push out a smaller store.