At the beginning, the international supermarket chain's individual store in china has great authority to make major decisions, such as pricing, purchasing. Now the company is planning to establish 4 purchasing centers by which the decision of purchasing will be made and purchasing activities will be taken for the individual store in the relevant regions.

What challenges the company will face when it changes the purchasing mode?

Question

Social Studies

Mara Marshall

18 April, 15:31

At the beginning, the international supermarket chain's individual store in china has great authority to make major decisions, such as pricing, purchasing. Now the company is planning to establish 4 purchasing centers by which the decision of purchasing will be made and purchasing activities will be taken for the individual store in the relevant regions.

What challenges the company will face when it changes the purchasing mode?

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Answers (1)

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Pierre Dawson · Answer 1

The biggest competitive threat the company will face is the presence of other global large retailers on the territory the supermarket is trying to enter.

Explanation:

Pricing is a major decider on the power of a goods in the economic or market world. This is a big issue when they have been existing market for similar product, this would make the producer consider the prices already available before launching his own product with it's price out there and it is better advised to place a competitive price for a new product entering the market to be able to compete with market out there already and be easily accessed by customers.

So, the biggest threat the new product would have is the existing price in the market and making his competitive.