Challenges
To achieve and maintain a foothold in an existing market, a prospective retail establishment must overcome the following hurdles:
- Regulatory barriers including
- Restrictions on real estate purchases, especially as imposed by local governments and against "big-box" chain retailers;
- Restrictions on foreign investment in retailers, in terms of both absolute amount of financing provided and percentage share of voting stock (e.g., common stock) purchased;
- Unfavorable taxation structures, especially those designed to penalize or keep out "big box" retailers (see "Regulatory" above);
- Absence of developed supply chain and integrated IT management;
- High competitiveness among existing market participants and resulting low profit margins, caused in part by
- Constant advances in product design resulting in constant threat of product obsolescence and price declines for existing inventory; and
- Lack of properly educated and/or trained work force, often including management, caused in part by
- Lack of educational infrastructure enabling prospective market entrants to respond to the above challenges.
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Famous quotes containing the word challenges:
“The approval of the public is to be avoided like the plague. It is absolutely essential to keep the public from entering if one wishes to avoid confusion. I must add that the public must be kept panting in expectation at the gate by a system of challenges and provocations.”
—André Breton (18961966)
“A powerful idea communicates some of its strength to him who challenges it.”
—Marcel Proust (18711922)