Issuesemerio - Essay part - Issues: Competition  Industry rivalry is the one of the most common

Issues:

Competition

Industry rivalry is the one of the most common issues here among businesses why some

may rise some may fall. It is true that competition is inevitable but the question is,

whose business will end sooner or later? Whose will make it to the top. Businesses

compete on the market on basis of cost leadership, product differentiation, and product

focus. Street merchandise retail stores has been affected by the impact of new entrants

of shopping malls in the San Jose, Occidental Mindoro. Both businesses have almost

similar products that they offer in the public. they compete on the price, as well as in

the quality of the products they offer. Big shopping malls have the financial capacity in

marketing and advertising their products to make it more attractive to customers.

Whereas, small retail business owners find it difficult since their capital resources is

limited only in their daily operating expenses.

Rapid Changes in customer preferences

Customers' responses to new business trends could have been a great advantage for

many business owners in the province, but because the changes in their preferences are

rapid, it somehow negatively affects most businesses, especially those small retail

businesses that cannot afford to adapt to changes, whether it be new products or

technology. Online sellers are very rampant nowadays; these new market players have

easily gotten into the industry, and massive customers prefer to purchase products from

them. There are TikTok, Shopee, Lazada, and other online selling platforms that are

virtual marketplaces that are convenient and accessible to every customer. It negatively

affects retail businesses in Occidental Mindoro because it lessens the target customers

that could have been engaging in the industry; rather, they tend to avail products in

online retail stores that are physically located in other provinces.

Low purchasing power of customers in the Occidental Mindoro.

 There is a direct relationship between the purchasing power of customers in Occidental

Mindoro and its market condition. It simply emphasizes the importance of customers'

financial strength and how it affects retail businesses in the province. Inflation has also

played a vital role in this aspect that can affect the level of performance of current retail

businesses; the higher the inflation, the lower the purchasing power, and the lower the

inflation, the higher the purchasing power.

This presentation shows the current situation of Occidental Mindoro when it comes to

inflation

Issuesemerio - Essay part