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- Disadvantages of chain stores include12:
- Inflexibility in practice
- Need for a heavy amount of capital
- Heavy loss on change in demand
- Lack of credit facilities
- Lack of personal services
- High operational costs
- Centralized direction and rigidly standardized operating procedures, which tend to limit individual selling units’ flexibility and hinder useful innovations
- Fewer customer services than individual stores
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The disadvantages of owning a chain store are:
- Inflexible in practice.
- Need for a heavy amount of capital.
- Heavy loss on change in demand.
- Lack of credit facilities.
- Lake of personal services.
byjus.com/question-answer/what-are-the-disadvant…The main competitive disadvantage of chain store organizations is their centralized direction and their rigidly standardized operating procedures, which tend to limit individual selling units’ flexibility and hinder useful innovations. Chain stores also tend to offer fewer customer services than individual stores.www.britannica.com/money/chain-store - People also ask
WebDisadvantages. Chain stores can cause local shops or independent businesses to go out of business because they cannot compete with the lower prices and extended hours of chain stores. Chain stores can contribute to the decline of downtown areas because they are …
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