Stores and retail points in the chain are vertically

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That means, when adding a new store, the entire system reaches a new group of customers.  integrated . That is, through distribution centers, they can buy from manufacturers, store goods and from there distribute them to stores in the system. Advantages and disadvantages of chain business Advantages of chain business Attract more customers and have a competitive advantage in price The chain business is methodically organized and has pricing strategies to compete with competitors . Therefore, products sold from the stores of a retail chain are often cheaper than independent retail stores. Reduce advertising costs Stores and retail locations in the chain also do not need to spend a lot of money on advertising because businesses often combine all stores into advertising campaigns for the brand. Therefore, businesses can significantly save on marketing costs .


Dispersing risks in business In a chain business system, stores can offset each Email Data other's sales. If a store is not operating effectively and has to close, it will not have a large negative impact on the profitability of the entire system. Flexibility during operation In addition, the entity can flexibly rotate employees between facilities to support each other. Chain business also brings many advantages in customer service and after-sales care. High administrative efficiency The chain business system carries out direct transaction activities, without intermediaries, so business flows move straight and fast. This will bring high administrative efficiency . Advantages and disadvantages of chain business Advantages and disadvantages of chain business Disadvantages of chain business Inability to provide customers with diverse choices and types of products and services. Because the store focuses on distributing key products according to the direction of the business If scientific management is not organized, the financial loss will be huge. A system with too many stores will create great pressure on management.



The manager of each store has limited power and lacks initiative and flexibility in operations. He cannot make major decisions for the store on his own but must follow the direction of the managing enterprise. Goods stored at stores in the chain are at risk of "dying prematurely" because businesses cannot immediately make timely adjustments if there is a major and unexpected change in the market. Important factors in chain business To form and manage an effective business chain, businesses need to consider many factors . Based on important factors, businesses will identify the right customer segments and have long-term investment plans to develop products. The factors will change depending on the time, method, and internal capacity of the business. Below, Miko Tech will point out 5 important factors in chain business that you need to know: 1.