Mr. Johnson, the owner of the only general
store in our neighborhood, was a very rude and mean person. He used to charge very
high prices because of his monopoly. Despite his goods being very expensive and
of very low quality, the residents of our area, including me, bought from his
store as we had no other alternatives. Many a times the items I bought from his
store were expired but I had to go on buying from his store.
After many years of misery, a handful of the
residents opened a consumer co-operative with much effort and investment. They
offered discounts along with good quality products. The staff employed in their
general store was also nice, polite and soft-spoken.
The immediate impact on Mr. Johnson’s
business was that his sales fell rapidly and he started incurring losses. To
cope up with the new threat, he started advertising extensively. He also
brought in new merchandise and diversified his product range but even then his
market share kept on declining at a great pace. Mr. Johnson was much aggrieved
at this and started planning other ways to gain back his lost market share and
customers likewise.
Another strategy he used was to sell his
goods at extremely lower prices, even lower than his rivals, but for no avail
and his rivals kept on gaining more ground. The result of this pricing strategy
was even more losses to Mr. Johnson who had no other choice than to sell off
his assets and close down the business as he was unable to fend off competition
due to his bad behavior and indifference to others’ problems.
Mr. Johnson tried another tactic for the last
time. He accosted the members of the consumer co-operative and plead to them
about his problems. He told them that he had no alternative bread and butter as
nobody would employ him due to his selfish behavior. If the consumer
co-operative continues, he will have to move away. The members of the
co-operative felt piety for him and told him that they would stop if he
discards his previous attitude. Mr. Johnson promised that he would do as they
said. Seeing this, the members of the co-operative closed down their store.
Mr. Johnson was back in business but he did
not continue his acts but started off in a new manner with the main aim of
public welfare with a reasonable profit. Ten years have passed by but Mr.
Johnson has abided by his promise and his business is currently a very
prosperous one. This is how he was able to fend off competition with much
effort.
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Nice essay it helped me a lot
ReplyDeleteThank you