Question

Exercise 1: Long essay questions (IN YOUR WORDS )

1. Differentiate between superstores, supermarkets and convenience stores giving one example for each.

2. Explain what a supply chain is. Differentiate upstream and downstream partners.

Identify the pricing strategy used in each scenario mentioning advantages and disadvantages for each

	Scenario A	Scenario B	Scenario C
	H&M offers just the right combination of fashion clothing quality at a fair price.	Costa coffee sets it Americano coffee price to match Starbuck’s.	Kuwait airways flight tickets are priced during the low seasons to break even on costs.
Pricing strategy
Advantages
Disadvantages

Answer 1

Answer 1:

SUPER STORES	SUPER MARKETS	CONVENIENCE STORES
It is large supermarkets that offer a wide variety of merchandise for sale. Superstores sells grocery as well as non-grocery products such as clothing, home décor, etc. As these types of stores are huge in size, they are often located out of town. They offer tremendous value to consumers due to the availability of huge variety of products at a lower price. Products can be bought at a discounted rate since the superstores have economies of scale. Hence, they often face opposition from small, local retailers. Example: Walmart.	They are large stores but smaller than superstores, which primarily sell food, beverages and household products. They offer a variety of products in the foods and beverages section. Prices are usually slightly lower than neighbourhood stores. Example: Food town.	These stores are small, retail neighbourhood stores that offer liquor, food, beverages, newspapers, magazines, etc. They have lesser variety in goods sold and prices are usually higher than compared to superstores and supermarkets. However, they are convenient as the stores are located within the neighbourhood. Example: 7-Eleven.

PLEASE GIVE POSITIVE FEEDBACK AND THUMBS UP MY ANSWER, THANK YOU.