Advantages Of Multiple Shops

Main advantages of multiple shops or chain stores can be described as follows:

1. Elimination Of Intermediaries

Multiple shops eliminate middlemen and business intermediaries as they are owned and operated by manufacturers/producers.

2. Economy In Buying

Multiple shops enjoy the benefit of bulk buying and mass production. These stores buy large quantity of materials or products at very low cost.

3. Fix Price

There is uniformity in selling price at all the branches and centers. Fixed price helps to build image and goodwill of the store.
advantages multiple shops
4. Low Price

Because of low operation costs, elimination of middlemen and large scale purchasing, these stores can offer quality goods at low price.

5. No Bad Debts

Products are sold on cash basis in multiple shops or chain stores. So, there is no risk of bad debts and outstanding.

   
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6. Diffusion Of Risk

In multiple shops, the total risk can be divided as the loss of one shop can be covered from the profit of another shop. 

7. Easy To Identify

Customers can easily identify these stores because of uniform decoration and display.

8. Economy In Advertising

Common advertisement for all stores makes economy in advertising. 

Disadvantages Of Supermarket

Major disadvantages or drawbacks of supermarket can be highlighted as follows:

1. Huge Financial Resources Required

It requires huge amount of financial resources to establish and run supermarket. So, it is difficult for small investors and entrepreneurs to start this business.

2. Distance

Supermarkets are located in the busy and overcrowded areas. They are faraway from villages and residential areas. So, suburban people are not benefited from these stores.

3. No Personal Attention

Because of freedom of selection and self-service, employees do not care about the customers. So, it lacks personal attention.
disadvantages of supermarket
4. No Customer Service

 Different services like home delivery service, installation service, after sales service, credit facility etc.  are not provided by supermarket.

5. Not Suitable For All Products

Supermarket is not suitable for the products which require the service and guidance of sellers and experts.
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6. Problems Of Mismanagement

Supermarkets may suffer from mismanagement because of poor communication and coordination among different sections and departments.

Advantages Of Supermarket

Main benefits or advantages of supermarkets can be expressed as follows:

1. Reasonable Price

Supermarkets can provide branded and quality products at low and reasonable price because of larger sales volume and low profit margin.

2. Large Turnover

Generally, supermarkets are situated in the busy and crowd area where more customers can be attracted. Large turnover is possible because of low price and freedom of selection.

3. Low Operation Cost

Supermarkets are operated with the help of few staffs. They do not provide after sales services to the customers. So, it needs low operation expenses as compared to departmental stores.
advantages of supermarket
4. High Profit

Supermarkets can earn high profit because of large turnover and less operation and selling expenses.

5. Shopping Convenience 

Supermarket ensures easy and quick shopping by offering varieties of products at the same place. Customers can buy all the required products without visiting different shops.

   
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6. No Bad Debts

Supermarkets eliminate the risk of bad debt because of cash basis transaction.

7. No Bargaining

Supermarkets eliminates problem of bargaining because all the products are sold on reasonable and fixed price. 

Advantages And Disadvantages Of Departmental Stores

Departmental stores are retailing institutions offering varieties of goods under one roof. There are several advantages of this type of stores such as large variety of products, proper customer service, benefits of bulk buying etc. and some drawbacks such as requirement of large investment, high price, no personal touch etc. This post points out some of the major advantages and disadvantages of departmental stores.

Advantages Or Benefits Of Departmental Stores

The main advantages of departmental stores can be highlighted as follows:

1. Shopping Convenience

Departmental stores offer large variety of consumer products at the same place. So, it facilitates the consumers to purchase all the goods they needed without moving from one shop to another.

2. Central Location

These stores are established and operated in the central location of city or town. It helps to attract more customers than other ordinary stores.

3. Wide Selection

Departments stores offer large variety of items of different, companies, brands, style, taste, design, quality etc. So, the customers can get better selection opportunity.

4. Benefits Of Bulk Buying

Because of adequate capital departmental stores can purchase goods in large quantity directly from producers. It reduces per unit price of the product and helps to maximize profit.
advantages disadvantages departmental stores
5. Customer Service

Departmental stores provide free delivery service, repair and maintenance service, credit facility, after sales service, telephone orders etc. to the customers. It increases customer satisfaction.

6. Efficiency

Departmental stores employ skilled, experienced, and trained manpower. It helps to increase operational efficiency of the business.


Disadvantages Or Drawbacks Of Departmental Stores

Some notable disadvantages of departmental stores are as follows:

1. Large Investment

It requires huge amount of capital to establish and operate departmental store. So, it is difficult for small investors to run such stores.

2. Distance

Departmental stores are situated in the center of the city or town. So, suburban people cannot avail the service of such stores.

   
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3. High Operational Expenses

It requires high operating costs to run departmental stores smoothly. Large sum of money is needed for staff salary, rent, decoration, advertisement, customer service etc. 

4. High Price

Customers have to pay high price of goods in departmental stores than ordinary retail shops because of huge capital investment and high costs of operation.

5. No Personal Touch

It is difficult to make personal contact with customers because departmental stores are too large and sales are made by salesman not by the owner. There is a lack of individual attention to the consumers.

Advantages And Disadvantages Of Air Transport

Air transport is the most safe, quick and comfortable system of carrying people and materials from one place to another. Main advantages and disadvantages of air transport can be described as follows:

Advantages Or Benefits Of Air Transport

1. Highest Speed

It is fastest among all the means of transportation (i.e. road, water and railway transport). So, people and goods can be transported more quickly in less time.

2. Suitability

Air transport is suitable to carry perishable goods (such as fruits, vegetables, fish etc), valuable goods, medicines and emergency items.

3. No Barriers

Air transport can be operated without any physical barriers such as mountains, hills, forest, rivers etc.

4. Suitable For Long Distance

It is useful for long distance travel because it is convenience, comfortable and safe means of transport.


Disadvantages Or Drawbacks Of Air Transport

1. Costly Mode Of Transport

It is costlier than other forms of transport. It is beyond the reach of common people because of high fare. 

2. Risky

Air transport is very risky means of transport because of high chances of accidents.
advantages disadvantages air transportation
3. Limited Capacity

It is not suitable to carry bulky and cheaper materials because of its small carrying capacity.

4. Unreliable

Air transport is highly affected by climatic condition. So, there is no regularity and certainty in this means of transport.

       
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5. Huge Investment

It requires large amount of capital for construction, maintenance and operation of air transportation.

Advantages And Disadvantages Of Water Transport

Water transport is an oldest means of carrying men and materials through sea, lake, rivers and canals. Main advantages and disadvantages of water transportation can be described as follows:

Merits Or Advantages Or Benefits Of Water Transport

1. Low Cost

Water transportation is cheaper than other means of transport (i.e. road, rail and air transport). It does not require infrastructure development costs and can be operated with low running cost.

2. Ideal For Heavy And Bulky Products

It is suitable to transport bulky goods and heavy cargo because of its largest carrying capacity.

3. Flexibility

It is more flexible than road and rail transport because it can be easily adjusted according to the requirements.
advantages disadvantages water transportation
4. Safety

Water Transport is safer than other forms of transport because of lower rate of accidents and breakdowns. 

5. No Disruption

There is very less chance of delay in water transport because of less traffic congestion.


Demerits/Disadvantages Or Drawbacks Of Water Transport

Demerits or disadvantages of water transport can be highlighted as follows:

1. Slow Speed

Slow speed is the main drawback of water transport. It takes a long time to reach the destination.

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2. Unsuitable For Perishable Products

It is not suitable to carry perishable goods by this means of transport because of long lead time.

3. Uncertain

Water transport is highly affected by adverse weather condition. So, there is uncertainty and irregularity in this means of transport.

4. Not Suitable For Short Distance

AS it is the slowest means of transporting goods and people, therefore it is not suitable to carry small loads over short distance (in terms of cost and time).