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Due to the development and rapid expansion of supermarket in some countries, many small, local business are unable to compete. Some people think that the closure of local business will bring about the death of local communities.

To what extent do you agree or disagree?

Give reasons for your answer and include any relevant examples from your own knowledge or experience.

The industrial revolution has brought many advantages, allowing an open market where the companies are free to compete. The question of whether the fast growth of the supermarket in some countries compound a treat to small local business has been a subject of debate. While some people back up the idea that closure of these local businesses provoke the extinguishing of the community where it operates, other do not promote it. I partially advocate both ideas and the reason why will be outlined in the next paragraphs.

From my perspective, the evolution and rapid expiration of supermarket compound an opportunity to the local community. The fact that supermarket open in a community shows a preoccupation in terms of business to fulfil a need and as result, there will be more infrastructure, more range of choice in which product to buy, more customer power regarding the influence they have on price as it allows competition between business and more job opportunities for the local inhabitants. For instance, opening a supermarket in a place that had only small stories may reduce significantly the price costumers pay for a product as the owner of mini-business will know that there is another place where the same item may be bought cheaper.

On the other hand, the supermarkets are normally characterized by a high power in determining the market price, which in most case are cheaper than those found in small retails. The idea behind this is that, as they are big, they can execute “economy of scale”. In other words, they can increase their profit by selling for the lower price but selling more products. Consequently, as the small businesses are powerless to do so, they may see no advantage in keeping their doors opened. This can bring trouble to the local population in terms of accessing a place to buy because supermarkets do not use to be as close as smaller ones.

In conclusion, I support both views, for the reason mentioned above. The supermarket is needed in order to allow more window of choice to the costumers but small businesses are also important as they are closer to the buyers. Hence, I strongly recommend more debate on this issue and advice the government to protect more this sector as they press an important role in the local economy.