Chapter 1

INTRODUCTION

Rationale

Back in the early years, the only immediate shop that you can find around the

town is the small general merchandise store. They offer food and other necessities

which are the primary needs of the townspeople. They are more convenient compared

to big malls which exist only in the cities at that time. However, there some of the locals

prefer to buy goods in the larger malls outside the community because of leisure, better

prices and broad choices of products referred to as “out shopping”. Retail

establishments in towns will have a great disadvantage in shoppers who want a better

deal. But because of convenience, built up personal relationship with the customers,

their loyalty, and the drive to buy locally because of campaigns, local businesses could

still pull-off a large percentage of the consumer population despite their narrowness of

product deals and a slightly unfavorable consumer attitude towards local shops (Ksenia,

2012; Cotleur, 2009).

The major attraction of the potential competitors to enter the business industry

of a certain place is the profitability of the entities around the area. The more profitable

it is, the more they are being attracted because business is for profit (Wilkinson, 2013).

In India, the value of retail stores is expected to grow by 2.8 times in four years, serving

as a magnet to international corporate retail chains such as Wal-Mart, Tesco and

Carrefour. While the national retail chains. The survey said that, since the mall

operation, 71% of the small shops and hawkers in India reported a decline in sales and

most of them reported a 20% downfall. 18% of the respondents are unaffected. Only

11% is continually attaining increase in sales – these were the stores which serves
product or services that are unavailable in large retail malls. Local grocery stores,

unbranded apparel stores, shoe shops and electronic retailers had suffered (Kalhan,

2007).

In the Philippines, retailers seek to fight foreign investors on entering the

country because they can’t match the competition. However, international entities were

already on their primary stage in entering the Philippine business through collaborating

with the top companies in the country, e.g. Forever21 and Uniqlo with SM Retail; Daiso

and Toys ‘R’ Us with Robinsons Retail. It is observable that foreign rivals are squeezing

the Filipino retailers’ profit margin because of our high consumer optimism, believing

that it’s fair to be inclined into foreign brands due to quality even if it’s costly as long

as it is reasonable. Some local brands have been venturing abroad to negate the

decreasing domestic sales (Galang, 2017; Domingo, 2017).

In the local setting, bigger shopping malls and grocery outlets are slowly going

down the line in the provinces. They are expanding to every possibly profitable town

that is trying to urbanize to provide customers the products that locals can only buy in

the metro. One example is the municipality of Nabunturan. One survey said that

Nabunturan has the highest competitive index in economic efficiency among the eleven

municipalities in Compostela Valley Province. Meaning, it has high rate of business

registration and financial institutions resulting to good employment rate, capital

formation and strong business community. Also, they topped the infrastructure

development indicating that the town is accessible, has sufficient fundamental social

and economic resources and has a serviceable road and transportation capacity. In such

a manner, it is already perceived that shopping mall chains will engage to do business

in the area because of its inviting economic status (Roque, et al., 2012; Silva & Tamayo,

2016).
 Past studies mentioned mainly on the threats of new entrants, its contribution to

the economy, and how they did set the competition. Some only focused on the broader

strategies that an entity had to go through. However, we have not come across to any

study that discussed about the financial challenges and survival in the point of view of

the inferior party in the competition in Nabunturan.

Upbringing the malls to the township areas have created a new partition in the

economy which provided a close connection of agricultural economy to urban-

industrial in the cities. As of 2018, municipality of Nabunturan has two dominating

shopping and retail chain namely, Gaisano Grand Mall which is a three-year old

shopping mall and NCCC Supermarket which is already five years in the local business.

Because of them, branching in the provincial area, we need to know their significant

effect (advantages and disadvantages) to the local small-retail business ventures upon

the start of their operations. In addition, using financial and economic data, we also

seek to have knowledge of the financial challenges that the local market had faced as

well as how they did survive the threat and coped with it. Through this qualitative study,

the struggles and financial strategies that were experienced by the pioneering local

merchandisers can be made known, and may even contribute to the new knowledge in

the field of business (Kantuba, et al., 2015).

Purpose of the Study

The purpose of this phenomenological study is for the owners of traditional

local merchandisers, which are anticipating threats from bigger competitors, to have

further knowledge about financial struggles that they are about to face and the ways of

coping up with the challenges through financial management. The result of this research

is expected to help them let the venture stay in the industry and be able to play along
with the larger players. Also, this can help attain the stability and growth of the firm by

lessening the risks and chances of encountering fatal problems during recession.

As accounting students, we are comprehensively educated about financial

management and studied the matters needed to achieve desirable outcomes of the

venture. Also, as residents of provincial area, we have observed that the traditional

merchandisers are able to continue the business after the existence of the dominant

competitors. However, in some areas, there are still few which didn’t survive so it is

assumed that there is a possibility of incorrect decisions has been made by the

management. We intend to identify those decisions that made the entities stayed or fell

from the arena through the data that will be gathered from the interview.

This study envisions on documenting various strategies involving the decision-

making perceptions of eight owners or managers in in-depth interview and eight owners

or managers in the focus group discussion. The participants are limited only on the

owners or managers of the existing general merchandisers, before the shopping malls

came up, located around the vicinity of Nabunturan, Compostela Valley Province.

Furthermore, this research aims to help the future researchers concerning about the

status of businesses after the surfaced of shopping malls.

Research Questions

Relevant information about this study is gathered through the following two (2)

major questions:

1. What are the financial challenges faced by general merchandisers on the

presence of big players?

2. How did they cope up with the financial challenges faced in the business?
Theoretical Lens

Small business is one of the main source of income of most people. It is the

backbone of the economy. It serves as the bridge between the customer needs and the

producer or manufacturer. It provides people with different choices and services. But

due to the rapid growth of the economy in a certain place, giant business came to

emerge. The coming of these giant competitors creates a great impact in the

performance of general merchandisers.

According to the proposition of Litz and Stewart (1997), that the entrance of

this giant competitors creates negative effect on the small business performance. Half

of the respondents of their study shows that there is a decrease of profit and sales in

their respective business, after the arrival of these big competitors. It is for the reasons

that these giant competitors brought a substantial benefit to the consumers. It is clearly

evident that superstore offered a lower price and a wider range of products than small

business. For small retailers cannot imposed a lower price because it may lead them to

close their business because of inability to achieve the desirable profit.

It has been discussed also that the authors studied six management responses

the changes in product mix, service mix, store layout, store hours, store size, and store

location. But according to the results most of the respondents are not using these actions

due to the perception that this must not be an effective strategy for almost of the owners

and managers believe that what will happen has already been decided and cannot be

changed kind of prospective of competing against the giants (Covin,1990; Taylor and

Archer ,1994).

It has been suggested that local sellers must avoid using low-price strategy

against their giant competitors, but instead they must use some strategies that target
markets that the larger competitors are usually neglected such as customer service and

product specialization or customization (Covin,1990; Taylor and Archer ,1994).

The proposition has been used by the recent study which discussed that 60% of

business perceive the mall as a negatively affecting their business, 10% percent are

positively affected and 30% percent are not affected. Of those that are negatively

affected by the giant competitors discussed the reason for the impact is that mall and

other shopping stores offer a much cheaper price by 20%, for those who are positively

affected they cited that mall has brought traffic to their business and for the business

that has not been affected by the giant competitors is that their customers are still loyal

to them (Mathenjwa, 2007).

Most of the products that greatly contributed to the turnover of the business are

those products that are basic needs of an individual such as soaps and other dry goods.

The study also shows the average number of business that remains in the industry since

the arrival of this giants. And it clearly exhibits that 85% of the entities confirmed that

there is a declined in the business, only 5% confirmed that there is an increase and 2 %

only for those who sad that the business in their vicinity remained the same. Due to this

following reason, for those business who did not survive or slacked most of the reasons

was poor management and lack of confidence to face the competition, for those who

confirm that it has positively increase discuss that because of unemployment and

poverty people opened a business to earn a living and for those who reported that it did

not increase nor decrease the number of business gives no reason (Mathenjwa,2007).

Those business that are closely located on the shopping malls are most

negatively affected than those business that located farther, but there are others business

that are located near the shopping malls experience a positive impact in their business
but only in a limited number. For the reason such effect is that people which resides

near the shopping malls find it more convenient to go than those customers who live

far from the vicinity. Another factor that contributed to the negative effect was because

of the cheap products, novelty factor and variety of products that are available at the

mall. This discussion was supported by another study which states that the competitive

weapon of large retailers is low price (Taylor and Archer 1994).

Significance of the Study

We are certain that this phenomenological study would prove the usefulness and

significance of knowing about the investing, financing and operating decisions that an

entity, which is under pressure, should do in order to continue the business even with

the existence of bigger competitors. Through the acquired data, this is to determine the

response of small retailers to the competition to secure their survival.

This study can add to the knowledge of the presented theories. This can be

applied by the existing small retailers. This can be used as basis on making their key

decisions to keep the business in the long run. This is also for them to know the nature

of the competition that they are in and to formulate strategies to maneuver the entity

and successfully deal with the problem for the improvement of the business. The results

will also serve the potential entrepreneurs to be aware of the corrective, to be more

acquainted with effective business schemes and also to somehow be guided actions

whenever the same problem will arise.

Moreover, the result of this study will let the larger retailers or mall owners

know the struggles that the smaller competitors had after they emerged in the industry.

This may lead them to also device a business approach that will lessen the loads of the

township merchandisers after setting the competition. Lastly, the recommendation of

this study can be useful to the future researchers who will be conducting studies of the

same concern.

Definition of Terms

Retailer. a company that buys products from a manufacturer or wholesaler and

sells them to end users or customers. In a sense, a retailer is an intermediary or

middleman that customers use to get products from the manufacturers (My Accounting

Course, 2018). A person, shop, or business that sells goods to the starters, there are

department stores, discount stores, specialty stores and even seasonal retailers

(Cambridge Dictionary, 2018).

Big Players. They influence the market where they operate. They are largely

insensitive to the discipline of profit and loss and their actions are based on discretion

(R. Koppl, 2002). usually have the more known brand, have the advantage in marketing

and advertising, and giving more benefits to consumers by having more items or

choices that can be availed (Dawar & Frost, 1999).

Business Competition. The rivalry between companies selling similar products

and services with the goal of achieving revenue, profit, and market share growth.

Market competitions motivates companies to increase sales volume by utilizing the four

components of marketing mix, the Product, Place, Promotion and Price- the four P’s

(Study.com, 2016).

Limitations and Delimitations

The scope of this study is limited for duration of more or less three months and

focuses only to those existing merchandisers or retailers before the malls did business

in Nabunturan, Compostela Valley. The research seeks to gather different responses of

the merchandisers to the competition with larger retailers or malls. The participants of
the study are the owners or managers of the selected merchandisers around the said

area. We have selected eight (8) owners or managers for in-depth interview and eight

(8) owners or managers for the focused group discussion. The data from the different

insights of persons who are in charge of governance of the participating venture were

from the in-depth interview and focused group discussion.

However, this study also has its weaknesses. One is on how to insert an

appointment to the respondents’ schedules and how to gather them during the focused

group discussion knowing that, as businessmen, they have busy timetables. Also on

getting the desired data, since financial information and the business schemes of an

entity are subject to confidentiality.

The study is based upon open-ended questions through one-on-one interviews

and focused group discussion. Due to the fact that there were only eighteen informants

for the investigation and due to its weakness, the outcome of this study may not achieve

the anticipated generalizability and also cannot support the claims of obtaining well-

founded conclusions. This study is descriptive in its investigation.

Organization of the Study

Chapter 1. It describes the phenomenon being studied. The importance of the

study is given emphasis on this chapter. It is followed by the discussion on the purpose

of the study that is to obtain the different insights and strategies of small retailers’

owners or managers in decision making in terms of financial management for deeper

understandings on their responses to the pressure caused by the competition and

compile the gathered data for crafting a more efficient course of financial decision to

meet financial objectives. Research questions are also presented as used during the

interview of the respondents, both in-depth interview and focus group discussion.
Shown also in this chapter is the theoretical lens that was related with the research

study. Afterwards is the significance of the study and the people who will benefit from

this research. Important terms that can be found in this study are clearly defined in the

definition of terms, to have a better grasp on understanding the entire study. Lastly, the

limitation and delimitation of the study is also presented including the respondents of

this research.

Chapter 2. This chapter includes the review of literature and other related

studies about the phenomenon under this research. The focuses of the review are the

following: financial management that was detailed through profitability, growth,

liquidity, leverage, and various decision makings. Business competition is also

elaborated in this chapter. This also includes the various related studies in which this

research anchored or made reference to.

Chapter 3. This explains the design and the methodology applied in this study.

These are the research design, role of the researchers, the research participants, data

collection, data analysis, and trustworthiness that includes the following criteria:

credibility, transferability, dependability, and conformability. Ethical considerations of

the study are also included in this chapter.

 Chapter 2

REVIEW OF RELATED LITERATURE

This chapter covers the review of literature related to this study. After discussing

the significance of financial management to the coping strategies of general

merchandises amidst the entrance of big players, we now present some previous studies

that had been conducted about the impact of the big players to the SMEs on some certain

locations and techniques on how to survive in the long run. Moreover, we will present

in the chapter theories and other related studies regarding on the themes emerged from

the data collected and interpreted.

In making timely, well-informed decisions in response to change, proper

financial management is very crucial. One can easily compare their performance. If

profits and sales have increased or decreased, and to be able to address the problem

immediately after discovery. Managers and owners can make necessary adjustments

throughout the year to accomplish objectives set out at the beginning of the year. Thus,

leading to operational efficiency of a firm.

While there is clear ascent in shopping center advancement in the townships,

there isn't adequate research done to survey the effect of shopping center improvement

on the spaza shops and little township retailers. Research relating to this subject is still

at its newborn child arrange. It is to the scientist's information that there is no

examination done in South Africa that takes a gander at the reaction of the little retailers,

particularly in the township, to rivalry from huge retailers. The purpose behind this

might be ascribed to the way that advancement of shopping centers in the townships is

a current wonder. Likewise, the township advertise has for some time been overlooked
as a market with potential for development. Ideally, this will change in the current

future and more consideration will be given to the little organizations in the township.

This exploration contemplate is a humble commitment in this respect.

Financial Management

Financial Management is a discipline managing the budgetary choices

companies make, and the devices and investigation used to settle on the choices. The

discipline, overall, might be separated between long-term and short-term decisions and

strategies. Both share a similar objective of improving a company's value by

guaranteeing that return on capital exceeds cost of capital, without going out on a limb

(Pandey, 2010).

Proper management needs to meet the seasonal change, if the marketable

securities are well invested, leverage of a business will be met. It may able also meet

the short-term obligations of the business. The business also has four phases including

recovery, prosperity, decline, and recession or depression. These phases may result to

increase employment and income or result to unemployment and lower incomes which

may lead change in sales, profits, and cash flow that must be anticipated and planned

for. So, the business must be financially managed and well organized, it must be ready

for any possible things that would happen in a business whether it may be good or bad

(Dunn & Cheatham, 2012).

All business success is mainly measured in either increase in turnover or income

or increase in employment. Several observational researches have tested the factors that

may affect a firm’s expansion. For example, the most important factor of successful

growth is the attitude of the owner-manager of the firm. Many business-oriented

individuals prefer not to grow because of fear of loss of personal control of the firm,
worry of having to go into debt or reluctance to pass the responsibility of running the

business over to professional managers (Makris, llias A., 2014)

Investment activity is another significant factor for firms’ survival and

development, as it is thought to be a wellspring of motive control or firms, expanding

long-run development and influences positively income and profitability. Besides, in

times of financial misery, most powerful and quickly developing firms like to get

resources in bring down cost, that will empower them to survive and increment their

market share. In this manner, a beneficial outcome of interest in deals’ development is

prospected (Makris, Ilias A., 2014)

Profitability is a significant measure in deciding stock return and the offer costs

in this way affecting firm’s valuation. Despite of the fact that a broad measure of

literature is being included connection to liquidity and profitability, no convincing and

uniform pattern of relationship is yet settled. In this way assert past exact outcomes are

blended and experience the ill effects of equivocalness concerning the type of the

connection between money change cycle and company's likelihood. The efficient

working capital management of a firm contains authorizing money from inventory,

accounts receivable, and accounts payable, and successful administration of which

decrease firm’s dependence on costly outer financing along these lines expanded

effectiveness of working capital prompting greater gain and market value. (Nobanee et

al. 2011; Yazdanfar and Ohman, 2014).

Corporate finance theory can be talked about under three principle ranges:

capital planning, capital structure and working capital administration. Capital planning

and capital structure choices are identified with financing and overseeing short-term

financing and speculation choices of the firm. The corporate fund writing in the past

has concentrated broadly on the investigation of long-term budgetary choices,

especially investments, capital structure or company valuation choices. Be that as it

may, working capital likewise specifically influences the liquidity of the organization

as it manages the administration of current assets and current liabilities that are basic in

the smooth running of a specialty unit (Raheman and Nasr, 2010; Samiloglu and

Demirgunes, 2013).

In general, different authors affirm that SMEs are the first and the most

important victims of a prolonged economic crisis. SMEs may suffer disproportionately

from economic downturns, because of their limited financial resources and dependence

on banks’ lending, paying such high interest rates. Adding to the financial aspect, their

relative shortcomings in terms of technological, managerial and human capabilities

may reduce their capacity to overcome the economic crisis. On the other hand, their

greater dependence on (fewer) customers and suppliers and markets may lead to

increased difficulties in maintaining their activity in the face of the crisis.

Papaoikonomou & all, argue that in this context, most SMEs suffered from demand

shock. (Butler and Sullivan 2005, Papaoikonomou & all, 2012; Robbins and Pearce,

2010; Latham 2009; Michael and Robbins 2011)

Therefore, effectiveness in working capital is key, particularly for generation

firms as it represents over portion of its aggregate resources. For an exchanging or

conveyance organization, they constitute significantly the greater part of their aggregate

resources and along these lines straightforwardly influence the profitability and

liquidity of the organization. Once in a while, off base working capital administration

methodology may likewise prompt liquidation, despite the fact that their productivity

may always be certain. Unreasonable levels of current resources can without much of

a stretch outcome in an association’s understanding a substandard degree of

profitability (Raheman and Nasr, 2010; Samiloglu and Demirgunes, 2008).

 Liquidity management decides to a vast degree the level of profit to be gained

and change of the shareholder’s or investor’s riches. This is because, for a firm to

succeed in business it must stay liquid enough to settle its long-term as well as the short-

term obligations. Otherwise, it would most likely to result a reorganization or worse,

liquidation of the firm (Bhunia, 2010; Smith, 2011).

Timely and precise financial statements preparation is critical to the

achievement or disappointment of a business. The Chief Executive Officer, proprietor,

accomplice or an individual from the senior administration team of a business must

survey the business financial statements and have a decent comprehension of them.

Envision a pipe, with all the everyday activities and expenses of a business – sales,

production, distribution, publicizing, promotion, warehousing, designing, research,

bookkeeping and administration – dropped into the highest point of this channel, with

timely and exact business financial statements turning out the base of it. Every last

inside and outer partner in the business – owner, shareholders, partners, management,

employees, suppliers, landlord, bankers, legal counsel, consultants, leasing companies,

Federal and State tax agencies, credit agencies, potential buyers and/or sellers of the

company – all rely on and have a personal stake in the issuance of auspicious and exact

business financial statements, the survey of the financial statement and a

comprehension of the business financial statements (Glen Katlein, 2016).

Financial reports help you project income, expense, cash flow and debt service,

allowing you to take steps to manage each of these critical areas. Divide your expenses

into manufacturing and overhead expenses if you haven’t already. Manufacturing

expenses include any costs directly tied to producing your product or service. Overhead

costs are those you accrue to run your business, such as rent, phones, insurance,

marketing and office supplies. Track your manufacturing and overhead expenses each
month as a percentage of sales to spot any large swings that indicate a problem. Even

though credit card interest gets rolled into your balance each month, record it as an

expense in your budget to get a true picture of your profits. Analyze your budget

performance against your projections each month to determine if you need to adjust

your spending based on faulty sales projections. (Ashe-Edmunds, 2018)

Meredith asserts that financial management is concerned with all areas of

management, which involve finance not only the sources, and uses of finance in the

enterprises but also the financial implications of investment, production, marketing or

personnel decisions and the total performance of the enterprise. However, such areas

are not currently well embraced by SMEs in Kenya and urgent attention needs to be

paid to. Lack of effective management during SMEs early stages is also a major cause

of business failure for small businesses. Owners tend to manage these businesses

themselves as a measure of reducing operational costs (Margaretha & Supartika, 2016;

Meredith, 2006).

Marketing Strategy

When sales are down and budgets are cut, it would seem that the most important

thing for a business to do is to focus on survival, not plan for growth. But recovery will

come, and marketers who are not ready to seize that opportunity will lose out to those

who are. Brands must develop plans to regain lost customers now. And effective

planning requires a detailed understanding of how consumer behavior and attitudes

have changed and how they might change again (Millward Brown, 2009).

Effective marketing starts with a considered, well-informed marketing strategy.

A good marketing strategy helps you define your vision, mission and business goals,
and outlines the steps you need to take to achieve these goals (Business Queensland,

2016).

A marketing strategy sets the overall direction and goals for your marketing,

and is therefore different from a marketing plan, which outlines the specific actions you

will take to implement your marketing strategy. Your marketing strategy could be

developed for the next few years, while your marketing plan usually describes tactics

to be achieved in the current year (Business Queensland, 2016).

According to Josh, companies that continued to invest in their marketing over

the past two years are going to be in a much better position than their competitors as

the economy starts to recover (Forward Level, 2017).

A business recovery strategy is essential to the survival of small businesses. The

aim of a recovery strategy is to ensure that your company can restore essential services

and return quickly to normal operations if a disaster such as a fire, flood or computer

failure strikes. Failure to recover after a disaster could have extremely damaging

consequences. According to IBM Global Services, "40 percent of organizations without

a business continuity or recovery plan will go out of business within a few years of a

major disaster." (Linton, 2018).

Your marketing strategy affects the way you run your entire business, so it

should be planned and developed in consultation with your team. It is a wide-reaching

and comprehensive strategic planning tool that describes your business and its products

and services, explains the position and role of your products and services in the market,

profiles your customers and your competition, identifies the marketing tactics you will

use, and allows you to build a marketing plan and measure its effectiveness (Business

Queensland, 2016).
 Having a business recovery strategy in place can help you maintain the

continuity of your business from the earliest possible point after a problem or disaster

occurs. Your strategy must focus on identifying and prioritizing the resources that are

most critical to your business. That might be your information technology system, your

manufacturing equipment or your stock room, depending on the nature of your

business. By identifying potential threats and risks to those resources, you can plan a

course of action to recover from different scenarios (Linton, 2018).

Your well-developed marketing strategy will help you realize your business's

goals and build a strong reputation for your products. A good marketing strategy helps

you target your products and services to the people most likely to buy them. It usually

involves you creating one or two powerful ideas to raise awareness and sell your

products. Developing a marketing strategy that includes the components listed below

will help you make the most of your marketing investment, keep your marketing

focused, and measure and improve your sales results (Business Queensland, 2016).

Now that your target audience is able to increase their spend, it’s important to

remind them why you’re their best choice. It’s no longer a decision based on cost, it’s

based on the value you bring. “Remind your client why they chose you in the first

place,” says Josh. Your audience needs to be reminded that your company still offers

the best solution (Forward Level, 2017).

Your strategy must set out plans for enabling key employees to resume work

with the facilities they need. This includes senior executives and managers, customer

service staff, production staff and sales representatives. List the facilities your key

employees need and identify alternative resources such as portable cabins with desks,

computers and telecommunications facilities, or mobile phones and laptops that you
can rent for short periods. If you store your company data on site, consider backing it

up with an external service provider so your staff can access essential data in an

emergency (Linton, 2018).

During a recession, marketing messages tend to focus on cost-reduction. As we

see a return to economic growth, evolve your marketing message away from financial

concerns and toward clients’ core business pain points and how your company can

support long-term sustainability. Take the time to talk to your clients to understand

shifting priorities and goals. How has their business changed through the recession?

This will help you to position yourself as a partner for growth and align your key

messaging with the needs of your clients (Forward Level, 2017).

By dropping prices, companies hope to lure customers away from competitors.

The benefit is higher market share, but it comes at a cost -- namely, lower margins per

unit. This strategy is particularly attractive to large companies that have high economies

of scale that allow them to operate at either a lower marginal cost than their competitors

or that make it possible to operate at a loss if needed. It's risky because, once prices

drop, it can be hard to raise them unless the company regains enough market share to

muscle out its competitors (Investopedia, 2018).

Loyalty programs are another way to ensure your customers continue to return.

By providing incentives to shop at your store, you can create customer loyalty. Loyalty

programs are only effective when customers know how to earn points, what the rewards

are, and how close they are to reaching a reward. Implementing a successful loyalty

program can create many benefits, including a bump in sales (Montenegro, 2017).
 Another strategy is to change the promotion strategy, which can include raising

the advertising budget or using the power of branding for the firm. Depending on how

well company leaders identify the specific issues that need to be addressed to fix a

promotional problem, the strategy can be very successful or simply a costly exercise.

Retailer JC Penney notably struggled with rebranding in the 2010 to 2012 period, while

competitor Target found success in the early 2000s by marketing itself as a "higher end"

discount retailer (Investopedia, 2018).

When a customer comes into a store and they cannot find what they’re looking

for, it creates a poor shopping experience and potentially loses you sales. While retail

stores cannot carry endless inventory, optimizing your assortment will decrease the

chances of your customer walking away empty handed. Assortment

optimization begins with analyzing current and historical inventory trends. This can be

a time-consuming task if done manually but can provide merchandise forecasts to

identify demand patterns. Having a healthy assortment can increase retail sales as it can

create a positive shopping experience for your customers and may encourage them to

continuously return to shop again (Montenegro, 2017).

Additionally, you can ensure you have the right assortment

by benchmarking against your competition. This allows you to identify any assortment

gaps across product categories. You can also learn the top selling brands for each

product category across competitors. You are sure to increase retail sales by adding the

key brands you were missing. Don’t wait until your sales decline to analyze your

business strategy. The key is to try to step ahead of the competition utilizing

competitive intelligence. Increase retail sales by having an edge over assortment, value,

price, and promotions (Montenegro, 2017).

 Finally, a company can revamp its product offering to better meet customer

needs or to provide something new and highly differentiated. Apple successfully

accomplished this by introducing the iPhone 6 when it was able to take back some of

the market share it had lost to Google's Android operating system. This can be

combined with raising prices to introduce another aspect of differentiation or to position

the company's offering as a premium product (Investopedia, 2018).

Identify your tactical marketing mix using the 7 Ps of marketing. If you can

choose the right combination of marketing across product, price, promotion, place,

people, process and physical evidence, your marketing strategy is more likely to be a

success. (Business Queensland, 2016)

Cutting Down Expenses

Customer communication management (CCM) is a form of business process

management focused on cutting costs while improving the customer experience. At

virtually every touch point, there exists an opportunity to solidify or grow the

relationship. Given the way most financial institutions are structured, there’s almost

always room for improvement in the processes behind customer communications. A

common weak spot is organizational fragmentation, which masks opportunities to

maximize the value derived from effective customer communications (Porter, 2010).

When financial institutions fail to get it right, the cost is high. Consider an error-

ridden letter. It sets off a chain reaction that reverberates throughout the organization.

It has the power to frustrate and alienate customers; consume significant resources;

breach compliance issues and create unfunded liabilities; result in inefficient customer

service; and jeopardize relationships (Porter, 2010).

 Without a unified customer communication strategy, financial institutions will

continue to experience excessive operational costs, waste opportunities to leverage

existing customers, and fail to adequately respond to customer needs. The opportunity

for success lies in an overarching strategy that enables financial institutions to

efficiently and effectively respond to customer needs and improve the overall customer

experience (Porter, 2010).

As you begin your quest for administrative cost savings, keep two key points in

mind:

First, forget about finding a single idea that would radically change the cost

structure of your organization or department, thereby solving your problem in one go.

(If such an idea existed, it would most likely entail so much risk that the organization

would never be willing to implement it.) Instead, you should plan to reach your goal

with a combination of 10 or more actions. (Coyne, 2010)

Second, the degree of organizational disruption caused by your reductions will

usually be proportional to the degree of cutting you do. Therefore, you should tailor the

reductions you pursue to your savings goal. Incremental ideas with minimal impact on

other departments can allow you to trim up to 10% of costs. Redesign or reorganization

ideas often eliminate the lowest-value activities, with moderate impact on other

departments, and can help cut expenses by up to 20%. Cross-department and program-

elimination ideas are usually necessary when you’re aiming for 30% or more, but they

have the greatest potential to be organizationally disruptive. (Coyne, 2010)

Unless cost cutting is new to the company, you’ve already done away with most

discretionary, comfort, and non-mission-critical perks and activities, such as holiday

parties, event tickets, and tuition reimbursement. If that’s the case, don’t try to eliminate
more—you probably can’t. Instead, see if you can consolidate what’s left. Combine

activities like training days and celebrations into single events. Combine events across

multiple departments. Cross-schedule the use of outside resources, such as facilities or

trainers. You’ll be surprised at the opportunities. For example, one university

determined that Parents’ Weekend and Homecoming were both far too valuable to

eliminate—but found that it could save close to 40% of the combined cost by holding

the two events on the same weekend. (Coyne, 2010)

It is rarely possible to achieve cost reductions of 20% unless you remove a

significant portion of the work content from the department. It’s never a good idea to

attempt to do the same work with 20% fewer people. (Coyne, 2010)

Friendly Approach to Customers

One thing all people who give great service have in common is that they have a

genuine customer-friendly attitude. You view your customers as the most important

part of your job and sincerely appreciate that they choose to do business with you. That

sincerity is the basis for great customer service that will keep your customers coming

back. (Dummies, 2011)

it means that you value your existing customers above all else and want to

involve them in helping you grow your business. You are not constantly looking over

their shoulders for the bigger, better, more popular customer walking in the door.

Rather, you are staying focused on them and putting as much energy into maintaining

a good relationship as you are into finding new customers. And in fact, you want to

involve them in that process. (O’Hara, 2012)

 Communicating and establishing relationships are really the essence of your

job. They don’t have to take a long time, and they often happen in an instant. The bad

news is that making a customer an enemy for life can take just as little time. When you

call a company on the phone and the telephone rings ten times before someone picks it

up, what kind of connection has that company made with you? More than likely, a

negative relationship has been created before any business is transacted. These

connections, as simple and quick as they are, are moments of truth for the customer.

(Dummies, 2011)

Your early customers are the most important relationships of your business’ life.

Why trust them to a software program that wants to drip vague, soap-boxy messages to

them at predetermined intervals? Get on the phone, skype, e-mail, Twitter, Facebook,

LinkedIn or livechat and hear what they are thinking. If you can, walk out to the front

of the store and talk to them yourself! For new (and new-at-heart) businesses your

market research, sales efforts, customer service and brand development are all coming

from that same relationship. Spend as much time as you can nurturing it. (O’Hara, 2012)

Diversification

Diversification is defined as a process on which a certain business is

venturing into a new line of business by means of acquisition or internal business

development. It is also a survivalist strategy to counterbalance the decline in the original

business. As the time pass by after the arrival of those giant competitors most of the

business around the capital were affected. And some of them are incapacitate to

compensate all the losses they had, so instead of investing more capital to continue the

business they diversified their business into a newer kind. A new line of business which

cannot be seen to those establishment like food related businesses, change of tires and
wheel service and many more. There are also businesses on which they are not only

focusing into one services but they can provide an extra kind of services to the

customers like aside from selling supplies they can also made a customize plaques,

medals and tarpaulins under the specification of the customer (Gomes and Livdan,

2012).

The diversification decision depends on the division’s productivity and on trade

demand shocks. The use of plant-level knowledge and taking productivity and optimum

firm size under consideration, they notice that the resource allocation of more wide-

ranging companies is in line with values increasing. Gomes and Livdan develop a

dynamic model of optimum company behavior, within which diversification may be a

value-maximizing response to increasing firm age and growth. In their model,

companies diversify for 2 reasons. Firstly, once an exact time span, investment in an

exceedingly firm’s current business is not any longer profitable, in order that

diversification becomes a rational strategy for companies that have too little profited in

their core business. Secondly, distributed companies will use economies of scope,

because of declining mounted prices of production and eliminating redundancies across

completely different activities (Gomes and Livdan, 2012).

Gomes and Livdan argue that the endogenous choice mechanism - that

companies diversify after they become comparatively unproductive in their current

businesses - accounts for the discount on the worth of distributed companies. Bernardo

associated Chowdhry provide an evidence for the diversification discount as an

implication of their real options framework, they predict that companies follow an exact

life cycle, from being specialized in discovering broader investment opportunities, and

eventually ending up either focused or diversified, once having learned regarding their

resources throughout this method. Provided that young companies have a lot of to find
out regarding their resources, their volatility of resource uncertainty is higher, that

results in a better value during this real options approach (Chowdhry, 2012; Gomes and

Livdan, 2012).

Yan et al. give empirical proof of the worth of internal capital markets in an

exceedingly depressed capital market setting. Their study, however the investment of

centered and distributed companies is full of deteriorating external finance conditions.

They concentrate on the diversified firms’ ability to substitute expensive external

capital with comparatively cheaper internal capital. In an exceedingly cross-sectional

analysis over the amount 1985 to 1997, Yan et al. notice that company investment

solely declines for centering companies as a result of hyperbolic finance prices at the

political economy level, whereas it remains constant for diversified companies. Hence,

diversified companies appear to possess a monetary advantage over single-segment

companies, even after they don't have any price advantage in raising external capital.

This finding is unlikely to be driven by either systematic variation in firm-

characteristics of centered and distributed companies or by general variations in their

investment opportunities. Rather, it suggests that multisegment companies appear to

take advantage of associate improved investment potency of internal capital markets

throughout recessions (Yan et al., 2010).

Yan et al. notice that the inner capital allocation of distributed companies

becomes comparatively additional economical throughout depressed market

conditions. Moreover, the surplus values of distributed companies are less negatively

affected than those of centered companies, once external capital becomes additional

expensive. Hence, Yan et al. argue that internal capital markets appear to make vital

worth for distributed companies throughout recessive periods. In an exceedingly

connected study, Hovakimian seeks to determine whether or not the potency of internal
capital allocation in distributed companies depends on their ability to boost external

capital over the amount 1980 to 2008. In line with Yan et al. (2010), he finds that the

investment efficiency of distributed companies improves once external capital markets

are distressed. The proof suggests that in recessions, distributed companies modify their

capital allocation in favor of their high-q segments, whereas cutting investment in

segments with lower q’s. These enhancements in investment efficiency are

considerably higher for financially forced companies. Binding monetary constraints

apparently improve company investment behavior by reducing free money flows

beneath social control discretion, thereby limiting potential over investment.

Especially, given a restricted quantity of capital, distributed companies appear to

exercise the precious possibility of transferring capital between divisions, thus on

defending their additional valuable investment comes at the expense of unprofitable

ones (Hovakimian, 2011; Yan et al., 2010)

Decreased on Sales and Profit

Negative revenue variance occurs when revenues from a business project are

lower than expected. This may occur because the expected budget was different from

the actual budget and the return on investment was not as high as thought. It may also

occur when the income reports from one year are lower than the reports from the

previous year. Negative variance is a serious issue and a good reason for businesses to

spend time finding out what factors caused the drop in revenue. (Lacoma, 2018)

The two main reasons for a decline in operating profit are fairly easy to pinpoint

-- you either have a decrease in sales or an increase in expenses. Understanding the

different reasons these occur can take more digging before you can stem the tide of
profit erosion. Understanding common factors that reduce business profits will help you

take steps to address them and spot problems quickly before they get out of hand.

(Ashe-Edmunds, 2018)

The market must always be considered a vital factor in revenue variance.

Sometimes a business can plan out every move and the market can still abruptly shift,

leading to a loss in sales or, often, a transposition in sales as consumers begin to prefer

one feature or product over another. This is largely outside of the control of the

company and can always create negative returns on a project that was thought to be

successful – and vice versa. (Lacoma, 2018)

Often sales are negatively affected by poor communication between teams. In

retail, it’s important to have a seamless relationship between marketing and

merchandising teams to make well informed strategic decisions to maximize sales

performance. Poor communication between the teams can lead to misaligned product

and advertising strategies. For example, if the marketing team is investing a

disproportionate amount of advertising spend on items at too low of a price point, the

merchandising team may not be prepared for the surge in demand, which can lead to

stock outs and lost sales. (Montenegro, 2017)

It’s possible to lose money on sales and still make a profit, depending on your

sources of income. Operating profit refers to the money you make on your core

business, such as making and selling a widget. If you sell $100,000 worth of widgets,

but your manufacturing and overhead costs are $110,000, you have an operating loss

of $10,000. If you make $25,000 from royalties, investments or asset sales, you can still

show an overall business profit. (Ashe-Edmunds, 2018)

 An obvious reason for a decline in operating profit is a decline in sales.

However, it’s possible to increase your sales revenues and suffer a profit decrease. This

can occur if your sales increase comes from higher sales of low-margin items while you

suffer a decrease of sales of high-margin products. Even during good times, it’s

important to track your sales by margins, territory, distribution channel and sales rep to

spot trends that might lead to problems. (Ashe-Edmunds, 2018)

Sometimes negative revenue variance is expected. This occurs when a business

changes its product lineup, location or other factors that will affect sales. There is

typically a transition period that occurs, when product sales fall for a short amount of

time from previously levels as the market reacts to the change. If the business plans

correctly, revenues will again rise with the new model. (Lacoma, 2018)

Another common reason for a decrease in profits is rising costs. Even if your

cost to make a widget doesn’t increase, you might have increasing overhead costs,

especially as you increase the pay of long-term employees each year. If your

manufacturing and overhead costs remain the same and your sales are good, you can

still see profit erosion if your debt-service costs increase. For example, missing a

payment on a credit card can raise your interest rate and payments significantly. (Ashe-

Edmunds, 2018)

When times are hard, people try to save money to spend on essentials. If your

product doesn't fall into that category, sales slow and revenue drops. When the economy

is bad, banks choose to retain potential loan money in case conditions worsen. If you

sell an expensive car, house or boat, the availability and ease of consumer credit, greatly

affects the number of sales. If the consumer doesn't have the cash, and he can't get a

loan, he can't buy your high-ticket product. (O’Connor, 2018)

Incapacitation to Compensate Investment

The moment you notice your sales dropping, you need to act fast to get to the

bottom of the problem. Sales can decline for various reasons, and finding the cause may

be the trickiest part. Luckily, Wiser has put together a list for you with the six reasons

why your sales are dropping and what to do to increase retail sales. (Montenegro, 2017)

It is important for teams to have aligned goals and to make decisions with the

same information. To result in better informed decisions and help integrate workflows

effectively to help increase retail sales, it is important to have a single source of truth.

(Montenegro, 2017)

When a customer comes into a store and they cannot find what they’re looking

for, it creates a poor shopping experience and potentially loses you sales. While retail

stores cannot carry endless inventory, optimizing your assortment will decrease the

chances of your customer walking away empty handed. (Montenegro, 2017)

We don’t have easy solutions and direct effective strategies to anticipate crisis

effects. In the wake of the economic crisis, many firms were faced with severe threats

that called for immediate action to ensure firm survival. When choosing the measures

to cope with this crisis situation, responsible decision makers were confronted with the

challenge to manage the trade-off between the benefits and costs of short-term crisis

reactions. On the one hand, short term action like massive cost-cutting, cash generation,

shorter reporting cycles, increased employee monitoring and tight budget control

seemed necessary to cope with a decline in orders and revenues and to ensure an

appropriate and well-coordinated response to changed environmental conditions. On

the other hand, such short-term measures might damage the long-term growth potential

and go at the expense of the long-term health of the firm as key stakeholder relations
may be irreversibly harmed (Asel et al., 2010; Bourletidis, Triantafyllopoulos, 2014;

Rhodes and Stelter, 2010).

Market Price

Price has a big influence on sales. In essence, a high price can maximize short-

term profit, while a low price can maximize long-term profit, as it generally attracts

more customers and helps the business gain market share. Price can also be a

determinant of a brand’s positioning and quality. If a product line launches with a high

price, it suggests high quality and prestige. (Montenegro, 2017)

A pricing strategy is an important element of a lucrative business. More than

any other element, a pricing strategy directly impacts the amount of profit you make.

Choose a pricing strategy that helps you meet your sales objectives, enhances your

brand perception and provides the best profit point for market demand. A discount

pricing strategy is useful for driving traffic and sales short term, however used as a

long-term strategy, discount pricing has some negative effects on market position and

brand loyalty. (Melanie, 2017)

One of the biggest mistakes a retailer can do is ignore their competition. If your

sales are declining, diving deeper into competitors’ data can help uncover useful

insights. The underlying issue of your declining sales can be due to a new marketing

campaign, a better price, or a new promotion. In fact, most reasons mentioned above

can be avoided by considering competitive intelligence. (Montenegro, 2017)

A price change on a price sensitive product can reduce sales. Therefore,

measuring a product’s price elasticity is important, as it will help you determine how

sensitive demand is to any price changes. By testing pricing strategies, you can

maximize sales and margins at the highest price consumers are willing to pay.

(Montenegro, 2017)
 To figure out the reason for your dip in sales, you can analyze competitive data

such as pricing trends and discounting behavior. If you’re a low-cost retailer, you want

to ensure your price is always lower, with price intelligence you can monitor your

competitor’s pricing strategies in real time. This can ensure you’re maximizing your

margins, while staying competitively priced. (Montenegro, 2017)

Businesses use discount pricing to sell low-priced products in high volumes.

With this strategy, it is important to decrease costs and stay competitive. Large retailers

are able to demand price discounts from suppliers and make a discount pricing strategy

effective as they buy in bulk. It is usually impossible to compete with these retailers

based solely on a discount pricing strategy. (Melanie, 2017)

Proceed with discount pricing strategies cautiously. Occasional discounts and

discounts that reward loyal customers are effective. Discounts used too often begin a

downward pricing spiral that may eventually damage your ability to sell the product at

full price. For example, if a retailer has periodic large discounts then it may condition

your market to wait for these sales, lowering profit margins. (Melanie, 2017)

Discounts to reward customers who purchase in bulk, repeat customers and

employees build customer loyalty. Loss leaders are effective for retailers who need to

increase traffic in the store. Promotional discounts, used sparingly, offer temporary

advantages including maximising sales, revenue and profit. During a short-term

discount period, more units are sold, allowing the company to decrease inventory stock

and temporarily raise revenues. (Melanie, 2017)

Consider product positioning before choosing a discount pricing

strategy. Consumers can often associate low price with low quality, even more true

when the brand name is not familiar. Implementing a discount pricing strategy increases

the chance that your product will be perceived as lower in quality. While you may gain
customers, that make decisions on price alone, other customers may choose competitor

products because of perceived quality. Low prices may drive sales for a limited time,

but do not build customer loyalty. When a lower priced alternative comes along, you

may lose your market share. Competitors can simply match your prices, or beat them.

When prices have been driven down to absolute low prices, it is difficult to raise prices

again, especially if your product is perceived as being lower in quality. (Melanie, 2017)

What is more of a challenge is to explain why consumers might care about

receiving a deliberate discount from a seller, as opposed simply to obtaining a low price.

For instance, a consumer may be more likely to buy a jacket priced at $100

accompanied by a sign which reads ì50% of its previous price than he/she would be if

the price were merely stated as $100. Alternatively, a retailer might claim its price was

$100 even though the manufacturer’s recommended price was $200. Despite its

prevalence, this pricing practice which we term discount pricing has apparently

received little economic analysis. In the literature on sales (for instance, Lazear 1986),

consumers care only about the price level, and whether a low price is framed as a

discount o§ a higher price plays no role. In this paper, we explore the economics of

discount pricing, focusing on the potential information content of a discount and its

strategic implications. Our analysis is developed in two models that suggest different

reasons why rational consumers care about discounts, as well as in a third model with

behavioral consumers. (Armstrong & Chen, 2012)

If, for whatever reason, consumers care about getting a discount, a seller may

have an incentive to exploit this by making false claims about its previous or regular

price. The outcome when these deceptive marketing tactics are used depends on the

consumers. If consumers are aware that sellers are able to misrepresent their reference

price without penalty, they will simply regard such sale signs and pay them no attention.
The result is that a potentially useful channel of information is absent. However, if

instead consumers are more gullible and believe a Örmís false claims (when such claims

are plausible), the outcome is worse, as these consumers may be induced to pay more

for the product than they would otherwise. (Armstrong & Chen, 2012)

Related Studies

Firm performance refers to the company's achievement in the market, which

may have diverse results. Firm performance is a central wonder in business researches.

Be that as it may, it is likewise a complex and multidimensional phenomenon.

Performance can be portrayed as the association's capacity to make adequate results

and activities. Success, when all is said in done, relates to the accomplishment of

objectives and goals in whatever division of human life. In business life, achievement

is a key term in the field of administration, despite the fact that it isn't generally

unequivocally expressed. Success and disappointment can be translated as measures of

good or indifferent management. In business research, the idea of progress is regularly

used to refer to a company's financial performance (Cantuba, et al., 2013).

However, there is no all-around acknowledged meaning of progress, and

business achievement has been translated from numerous points of view. There are no

less than two essential measurements of accomplishment, monetary versus different

achievement and short-versus long term achievement. Henceforth, achievement can

have distinctive structures, e.g. survival, benefit, rate of profitability, deals

development, number of utilized, satisfaction, notoriety, et cetera. As such,

achievement can be believed to have distinctive implications by various individuals.

Regardless of these distinctions, individuals for the most part appear to have a

comparative thought of the marvel, i.e. of what sort of business is effective (Cantuba,

et al., 2013; Foley and Green 2011).

 Since their appearance in the structure of the city, strip malls (shopping centers,

hypermarkets) have pulled in researchers' considerations Various studies in the fields

of urban examinations, economic geography and economics shed light on this

phenomenon. An extensive variety of studies has been led in the USA, the first nation

in which such centers were built up. Since the 1980s, moderately new research has been

conducted on European urban areas. After the foundation of a few malls in rising and

developing nations, analysts started to contemplate this phenomenon there (Humphrey

2007; M. I. M. Abdelghani, 2013; Wehrheim 2007)

The perspectives and points of view of these commitments are assorted. Some

exploration sees the shopping malls as another segment in the physical structure of the

city and links them and the city's improvement. Other research sees them as another

sort of architectural structures or spotlights on their economic effect, especially their

effect on customary retailing in the urban communities and locales. Further studies

focus on it as spots that make another sort of social space, not the same as the social

spaces of the traditional markets. Some features the connection between these centers

and changes in the utilization conduct of the populace. Past examinations researches

have built up that customers see shopping centers as a wellspring of entertainment

(Bloch et al., 2013; Farhangmehr et al. 2011; Hahn, 2012; Krüger and Walther, 2011;

M. I. M. Abdelghani, 2013; Monheim, 2010; Mowen and Minor, 2010 Pump-Uhlmann,

2012; Sievers, 2014).

This paper will as often as possible utilize the terms traditional markets and

retail exchange, on the one hand, and huge shopping malls/centers, on the other.

Traditional retail exchange implies a wide range of supermarkets, minimarkets, stores

offering just food and other stores selling merchandise like apparel, electronic machines

and so forth, which are distributed in traditional market territories, for example, al-Seeb
and al-Khoud. To answer the principle question of this investigation, "To what degree

have recently settled shopping centers affected retail exchange customary markets?",

the researchers and his group of male and female students from the Geography

Department at the Sultan Qaboos University used two major methodologies. The

quantitative approach depended on a survey that was replied by 96 guests in Suq al-

Seeb (73) and Suq al-Khoud (23) and by 269 guests of shopping centers (81 in Lulu,

55 in al-Jomla, 52 in al-Bahja and 81 in Ramez). The technique used to gather

information was a face-face interview in light of an organized questionnaire. They were

applied to guests of business sectors and shopping centers amid their visits to those

spots. Also, I utilized the qualitative approach, in which 30 in-depth interviews were

directed, which gave the respondents a good chance to talk freely and to reveal to us

their conclusions on numerous issues identified with the investigation subject. The

more profound interview gave us information that was impractical to get from the

questionnaire (M. I. M. Abdelghani, 2013).

The presence of shopping centers in Oman is because of various elements: an

expansion in the populace and high urbanization, change of the economic situation of

the populace, change in buyer practices, improvement of foreign investment

opportunities, development of infrastructure (especially transport and power), low costs

of building zones until 2005 and low work costs. Many of the studies conducted on the

truth of retailing in European urban communities demonstrate that shopping centers

majorly affect customary retail shops in the downtown areas. A large number of these

stores have shut in light of the fact that they were not able to contend with huge

shopping centers. The truth of retailing in Oman is extraordinary. Despite the fact that

the present investigation demonstrated that shopping centers have affected retail

exchange the conventional markets, particularly as to some specific sorts of products,

and have preferences in pulling in extensive quantities of clients, the customary markets

proceed to have their significance and pull in clients acquiring nearby and customary

products, for example, attire and customary nearby sustenance. Furthermore, for

Omanis the customary markets are spots to purchase and offer, as well as spots of social

collaboration and spots to reestablish the imperativeness of informal organizations. Be

that as it may, the inquiry is: How long will the customary markets in Muscat keep on

resisting the infringement what's more, attack of enormous worldwide shopping

centers? (M. I. M. Abdelghani, 2013; (Monheim, 2007))

Different consequences of this exploration need to do with the new

regionalization of retail exchange, in Muscat, as well as all through the Sultanate of

Oman. The fixation of retail exchange territories and shopping centers with their new

qualities and engaging quality in Muscat, the accessibility of private vehicles and the

change of the road network and the great availability of these new shopping goals are

for the most part factors prompting another guide and to new appropriation of retail

exchange the nation. (M. I. M. Abdelghani, 2013)

As indicated by Zenia Kotval and John R. Mullin, shopping centers additionally

give decent second occupations or part time employments for adolescent mates and

senior citizens. Further they have said their work about effects and downtowns.

According to them shopping centers hurt downtowns. Local retail chains that can't

contend with the shopping center regarding costs and assortment will definitely close.

Family owned stores will endure losses and few will survive the progress (Cantuba, et

al., 2013; Kotval and Mullin, 2009).

As per Anuradha Kalhan who have made a study in Mumbai "just 14 percent of test

of little customers and peddlers has likewise so far possessed the capacity to react to the
aggressive threat of the shopping centers". Dionne Bunsha has featured in his paper, In

Mumbai, where there is struggle over every last bit of room, sellers are losing the fight. In

the previous couple of years, a few road merchants have been compelled to vacate. The

book shops along Flora Fountain, as much a piece of the scene as the landmark itself, have

been removed (Bunsha, 2007; Cantuba, et al., 2013; Kalhan; 2007)).

In Dagupan City, while a few occupants have been lured by shopping center

chains, numerous still shop at homegrown stores where they "feel at home and

comfortable."Pangasinan has two major shopping centers—the SM City in Rosales

town and Robinsons Place in Calasiao town. SM is likewise intending to manufacture

a shopping center in Dapupan and transactions are progressing, says Mayor Benjamin

Lim, whose family claims and works Magic. Magict has branches in a few towns in

Pangasinan, Nueva Ecija and the Ilocos territories. Lim says Magic's deals dropped by

15 to 20 percent, much like numerous other Dagupan stores, when Robinsons opened

its store in March. "Be that as it may, our experience is that the recently settled shopping

centers influence nearby retailers just for a year or two, at that point deals will come

back to the first level," he says (Cantuba, et al., 2013).

In the present investigation the spotlight has been given totally on this portion

and the effect of the shopping centers on the little customers are destructive. In the event

that preventive measures were not taken then the opposition may decline the

circumstance of little customers. From the above discoveries, it is prescribed that basic

supply segment ought to be institutionalized for ideal outcomes. The retail organize

must be Indianized, as far as correspondence, variety, atmosphere, benefit and

locational focuses, because of other retail item factors. Basic supply is low contribution

products, clients barely sit idle in buying these merchandises. Be that as it may, the
clients have turned out to be more mindful with respect to basic need still they are value

delicate (Cantuba, et al., 2013).

The retailers need to upgrade the retail organize methodologies based on redid

territorial approach. The systematic mass of the examination makes it adequately apparent

elite showrooms and marked organizations and products (like Wal Mart) are not attainable

in the Indian situation and they need to reframe their methodologies (Cantuba, et al., 2013).

Subjectively, face‐to‐face interviews are being attempted with designers and

speculators engaged with retail advancement in these optional economies. Their

examinations discoveries demonstrate that in light of a specific arrangement of markers,

the improvement of the Jabulani Mall has had a by and large positive effect. This is

fortified by the way that 96% of the purchaser overview respondents appraised their

general level of fulfillment with the shopping center as "adequate" to "extremely

positive". Also, 73% of the buyer study respondents demonstrated an apparent

requirement for the shopping center to be extended. In any case, these positive

discoveries are tempered by the way that the shopping center led to a decrease in the

quantity of neighborhood merchants in the territory and a decrease in purchaser bolster

for nearby dealers. It stays to be seen whether the other five contextual analyses will

uncover comparable discoveries and whether contrasts will rise between the vast

metropolitan focuses and the all the more rustically found focuses (Cantuba, et al., 2013).
 Chapter 3

METHOD

The discussions in this chapter are the different methods used in conducting this

phenomenological research. Various methods ad techniques in determining the sources

of information on the analysis and evaluation are shown in this particular chapter. Also,

explained here are the process of the used research design and the role of the researchers

all throughout the study, followed by the procedures and criteria in the selection of the

research participants. The procedure of how the data is collected and analyzed, and the

method that was used to measure the trustworthiness of the study is presented here.

Finally, stressed in this chapter is the giving of assurance to the participants of their of

confidentiality.

Methodology

This paper aimed to know what challenges are faced by general merchandise

against the big player in the business, and how do they cope up in terms of their financial

capability and how they remain in the business industry despite of their big competitors.

This study is qualitative study in nature.

This chapter shows the research design, role of the researcher, research

participants, and the process of data collection, data analysis, and trustworthiness that

includes the four criteria: credibility, confirmability, dependability, and transferability.

All individuals that were concern with this study was also included as well as the

process of ethical considerations.

Research Design

This study aims to know the insights, convictions and values of managers and

owners of general merchandise about the financial management challenges and coping

strategy to remain in the business. Phenomenology is the best approach we can use it is

because it tackles about the live experience of the business owners about their financial

stability and coping strategy in their own business. We would like to know what and

how do the owners share the same experience in that certain phenomena. (Creswell,

2007; Van Manen, 1997).

As an accountant in the future we would like to know how they manage

effectively their assets and resources through the use of qualitative approach, we would

like to formally hear their thought and opinions, and as researchers we must see the real

situation and emotion felt in than merely explaining the situation with no formal

interaction with the participants. It is better for the researcher to see what is really

happening than just giving participants a piece of paper with questions then let them

answered it without researchers looking at the real feelings the participants have in

answering the specific questions. (Dilthey 1924; Dilthey, 1977a).

We want to understand the participant deeply with the situation they have now,

their motivations, their inspirations that when heard can inspire everyone who are in

the same situation. And qualitative approach is the best method we can use, for

interactions with the participants cannot greatly be measured statistically. Theories can

give us pictures, totality, associations and relations but they could not explain the

feeling of that certain individual, and how he/she reacts with the situation (Creswell,

2007).
 Personal interaction with the participant helps the researcher identify and

explain the meaning of experience felt by that certain individual. Researchers would

clearly ask the full details of that certain phenomenon; then followed by some

questions. Researchers then described the participant’s emotion possessed by an

individual in answering the questions, without them being biased. The researchers

understand that certain opinion, without them dictated by their own assumption and

prejudgment (Heidegger 1927; Heidegger,1962).

Researchers depend on the participants view about the situation so instead of

having a theory as post positivism, we would like to have a formal interaction so that

we are able to construct the main point of having the study. For us researchers open-

ended questions are better way, we listened carefully to what the participants will say

without having any personal thoughts. Then we will make an interpretation based on

their answers. (Creswell, 2007).

Qualitative research seeks to explore the world. We would like to dig deeper

about a certain phenomenon. Qualitative researchers is more comfortable if we gather

the data in its natural settings, where participants experience the problem. Having a

personal conversation with the participants, we can able to see the behavior and the real

scenario of the said situation and this is the major quality of a qualitative study. (Denzin

&Lincoln, 2005, p, 3).

The qualitative study involves interviewed individuals at the same length of

time to determine how they personally faced the financial management challenges and

what are their coping strategies in order to survive. On the other hand, (Denzin and

Lincoln, 2005) illustrated qualitative research as an “interpretative naturalistic approach

to the world.” This means that the researchers study things in natural setting, seek to
create sense of or explain phenomenon in terms of the meaning managers and owners

bring to them. We, researchers, must not see only on one side of the story but also the

more sensible side of it. We used phenomenology because its center is the live

experience of the managers and owners (Carpenter, 2007; p. 43).

In doing phenomenological research bracketing is absolutely needed,

bracketing is a process in which we researcher does not allow any personal opinions,

biases, assumptions, theories, or previous experiences to see and describe the

phenomenon. We need to analyze not just what the participants told but to what it really

means. As a researcher, we need also to be careful and keen on pre-obtainable beliefs

on the study. We seek to fully capture the participants view and experience they will

share during the study (Gearing, 2004).

General merchandise owners and managers are the respondents of this study.

Using an in-depth interview with the aid of interview materials (voice recorder, pen and

paper) documentation and live observation, we could attain the data we needed. After

data gathering. We used analogy as our approach. This would mean making

comparisons, finding similarities and correlations of the different experiences of the

bistro owners so that common theme about the subject might be extracted. Then through

the data we gather we could derive what constitutes to the essence of the phenomenon

to our personal experiences and to the subject itself (Ariola, 2006).

Qualitative researchers do not rely on a single source of data only, we collect

multiple source of information through interviews, documentaries and all other sources.

After gathering such data, we keenly analyze them and organize them into categories.

After applying data reduction, we presented data in narration and verified by checking
its validity findings through triangulation (to get credible data), transferability, and

dependability. (Creswell, 2007).

Triangulation allows us to be confident about the result of our researches,

because it gives us the validity of it. This provides us a well-founded information for

some participants is confident enough to share their thoughts and opinions to others

than to a person they knew (Yeasmin & Rahman, 2001).

Thematic Analysis is a type of qualitative analysis. It is used to analyze

classifications and present themes (patterns) that relate to the data. It illustrates the data

in great detail and deals with diverse subjects via interpretations (Boyatzis, 1998).

Thematic Analysis is considered the most appropriate for any study that seeks to

discover using interpretations. It provides a systematic element to data analysis. It

allows the researcher to associate an analysis of the frequency of a theme with one of

the whole content. This will confer accuracy and intricacy and enhance the research’s

whole meaning. Qualitative research requires understanding and collecting diverse

aspects and data. Thematic Analysis gives an opportunity to understand the potential of

any issue more widely (Marks and Yardley 2004). Namey et al. (2008) said, “Thematic

Moves beyond counting explicit words or phrases and focuses on identifying and

describing both implicit and explicit ideas. Codes developed for ideas or themes are

then applied or linked to raw data as summary markers for later analysis, which may

include comparing the relative frequencies of themes or topics within a data set, looking

for code co-occurrence, or graphically displaying code relationships.” (p.138).

Analysis allows the researcher to determine precisely the relationships between

concepts and compare them with the replicated data. By using, thematic analysis there

is the possibility to link the various concepts and opinions of the learners and compare
these with the data that has been gathered in different situation at different times during

the project. All possibilities for interpretation are possible. Qualitative research needs

to be able to draw interpretations and be consistent with the data that is collected. With

this in mind, Thematic Analysis is capable to detect and identify, e.g. factors or

variables that influence any issue generated by the participants. Therefore, the

participants’ interpretations are significant in terms of giving the most appropriate

explanations for their behaviors, actions and thoughts. This fits in well with the features

that are involved in the process of Thematic Analysis (Hatch 2002; Creswell 2003).

Our participant in conducting this study is compose of 16 members, 8 for the

in-depth and 8 for the focal group discussion. We believe that the component of the

said contributor is enough for us to gather the data needed in conducting this study.

Role of the Researcher

In this study, we took the role of the moderator and a chronicler in the

discussion. In focus group interviews the interviewer is usually referred to as the

'moderator’ and this special name reflects the fact that the researcher's role differs from

that in one-to-one interviews. He added that although they still need to ask questions,

during the session they need to function more as facilitators of the discussion than as

interviewers in the traditional sense. Because the dynamic of the focus group is one of

the unique features of this method, the researcher’s role inevitably involves some group

leadership functions, including making sure that nobody dominates the floor and that

even the shyer participants have a chance to express their views (Dornyei,2007). In this

study, we act as the human instrument of data collection (Denzin and Lincoln, 2003).

It states that we, researchers, are the one who collect the data through one on one

interview and focal group discussion. Researchers must put themselves in the shoes of
their participants to be able to understand them (Greenbank, 2003). As researchers, we

must respect the opinions of the participants and ignore personal views and reactions.

Researchers ask question in a pleasant way, then listen carefully, then ask more

questions to deepen the conversation

Research Participants

In this phenomenological study, the participants are the different general

merchandise owners and managers in the locality of Nabunturan. According to

phenomenology the participants may compose of 3-15 participants. (Creswell, 1998)

The participants that are involved in this study were interviewed for a wider

view and analysis. These were the different small retail owners and managers in

Nabunturan. About their different perspective about the financial management

challenges and coping strategies of their business. A purposeful sampling was used to

pick a superior administrator for private interviews.

The inclusion of the criteria are managers, supervisors and owners of general

merchandise and their coping and financial strategy to remain in their respective

businesses. As part of interview, selection criteria were based on respondent’s peculiar

experiences about effectively managing their finances and their ways of coping up the

challenges in their respective business. Their unique experience gives additional

information to add to a deeper understanding of the processes and procedures in

collecting and building-wide data.

We interviewed eight (8) participants through in-depth and a Focus Group

Discussion (FGD) with eight (8) participants from different bistro entrepreneurs. It was

a bit hard to gather them because of their conflict schedules but we are delighted to see

them making time to help us fulfilling this study.

Data Collection

The following steps are used in gathering the data:

First, through purposive sampling technique in which we identified our

participant. We approach the different business owners located in the locality and asked

about their coping and financial strategy to remain in the business, their answer serves

as our bridge to fully understand their cases.

Second, if they are owners or managers in any general merchandise business,

we asked them pleasantly if they can share their experience and opinion as needed in

the study. By this time, we are now exploring, imagining and seeing through their eyes

the feelings they have when they were experiencing the obstacles they have those time.

Finally, we give an orientation about the study; we discussed to them what our

study all about is and what the purpose of it. We interviewed them one on one by some

length of time and assured them the confidentiality. Triangulation method was used as

research techniques that measure the credibility, validity, conciseness and completeness

of a study). This technique is helpful for the researcher to cross-checking of the data

collected during the study. (Yeasmin, 2012)

Data Analysis

After transcribing the focus group and in-depth interviews, which relate to the

topic, we separated them into core ideas that show concrete thought. The responses of

the participants were group into the same themes that reflects various aspects of the

phenomenon. The data that was collected by interviewing the respondents was

thoroughly analyzed based on their different insights and perceptions of being

mismatched as an accounting student.

 1. The transcribed data after the peculiar interview were formulated and taken

from the stipulated conversations. The questions that are asked to them was

What are the financial challenges faced by general merchandisers on the

presence of big players and how did they cope up with the financial challenges

faced in the business?

Trustworthiness and Credibility

When we conducted the qualitative research, we put into account the responses

of our informants. We also meticulously consider all the details of the data. We checked

and rechecked all the transcriptions and the importance of the data that relate to each

other on their themes.

To establish trustworthiness and credibility in the study, Creswell and

Miller (2000) suggested the choice of legitimacy of the procedures. The discussions

about trustworthiness are governed by the research lens and its paradigm assumptions

that can help the procedures in the study. We contend that in this study, the plausibility

was determined by the response of the informants. Silverman (2007) posed the

questions on “Does it matter?” and “How the credibility is being sustained and

recognized?”

Credibility is an evaluation of whether or not the research findings

represent a “credible” conceptual interpretation of the data drawn from the participants’

original data. (Lincoln & Guba 1985). To address credibility, we used three techniques.

First, we presented the credibility of the experiences as intent of truthfully illustrating

and knowing the facts which are phenomenon in which our participants are included.

Second, in designing the research procedure, we conducted a focus group discussion

which extracted ideas about how they accountably managed their financial resources.
Third, we deliberately asked the informants their way of financial management and how

do it help their business to stand amidst of the challenges they face after the arrival of

the giant competitors. Our intention here was to create layers of data from each

participant.

Transferability is the degree to which the findings of this inquiry can apply or

transfer beyond the bounds of the project according to Lincoln and Guba, (1985). To

address transferability in this study, we have included in the Appendix about several of

the data analysis documents used to give answer to the research question in order to

gain access to the possible inquiry. This will give other researchers the facility to

transfer the conclusions or recommendation as bases for further study.

Dependability is an assessment of the quality of the integrated processes of data

collection, data analysis, and phenomenal explanation.Confirmability is a measure of

how well the inquiry’s findings are supported by the data collected according to Lincoln

and Guba (1985) To address the issues of dependability and confirmability in this

study, we banked on an audit trail of the participants responses wherein their identity

were treated with confidentially. After the video and audion tape was transcribed, the

text were given back to the respondents for authentication and were asked to sign a

verification form. After the completion of our data analysis, the results in Chapter Four,

and the discussions in Chapter Five, our auditor had assessed carefully our audit trail

with original transcripts from the interview, data analysis documents. The auditor had

assessed the dependability and confirmability of the study by signing the verification

letter.
Ethical Consideration

Financial management and coping strategies for survival in the business is a

serious issue for the managers and owners, especially having a giant competitor in the

industry. Improper financial management and lack of strategies can be considered as

the reason why some small business cannot survive in the competition. We made this

study to discuss the opinions and techniques of the entity about the issue. The very

purpose of this study was to know the financial challenges faced by retailers in the

arrival of the big competitors and in the manner what are the strategies in able for them

to survive in the competition.

The main concerns of our study were individuals who are owns or managers of

a small business. Therefore, we have to ensure their safety, give full protection so that

they will not lose their trust to us. In conduction this study, we followed the ethical

standard, as pointed by (Boyatzis, 1998; Mack, et al, 2005), which are the respect for

persons, beneficence, justice, consent and confidentiality.

Respect for persons needs an obligation of the researcher not to exploit the

weaknesses of the research participants. Self-sufficiency was avoided in order to

maintain friendship, trust, and confidence among the participants and the researcher.

Before hand, we asked permission from the owners and managers where data collection

belongs, who are the research participants of our study before conducting the research

(Creswell, 2012). This was done to pay respect for the individuals concerned in the

study.

Consent is another most important way of showing respect to persons during

research (Creswell, 2012). This is to let all participants became aware on the purpose

and objectives of the research study that they are going to involve. Written consent was
provided for them to get theirapproval. After getting their nod, they have actively

participated the in-depth interviews and focus group discussions. Of course, they were

informed on the results and findings of the study.

Beneficence requires a commitment of minimizing risks to the research

participants rather maximizing the profits that are due to them. Anonymity of the

interviewee was kept in order not to put each participant into risks. At all times,

participants were protected, so every files of information were not left unattended or

unprotected (Bricki and Green, 2007).

Confidentiality towards the results and findings including the safeguard of the

participants, coding system were used. Meaning, the participants’ identities were

hidden (Maree and Van Der Westhuizen, 2007). As recommended by Maree and Van

Der Westhuizen (2007), all materials including videotapes, encoded transcripts, notes,

and others should be destroyed after the data were being analyzed.

Some of the informants were hesitant to be interviewed at first because they

were afraid what to say but because of our reassurance to them in regards to the

confidentiality of their responses, they later gave me the chance and showed comfort in

answering the interview questions. We were extra careful with our questions and due

respect was given importance to this study.

Justice requires a reasonable allocation of the risks and benefits as results of the

research. It is very important to acknowledge the contributions of all the participants as

they generally part of the success of the research. They must be given due credits in all

their endeavors (Bloom and Crabtree, 2006). They were not able to spend any amount

during the interview. Sensible tokens were given to them as a sign of recognition to

their efforts on the study. We are hoping that through this study, they will be able to

know more about some information about ways and techniques on how will their entity
survives in count of times and maintain a good name into what positive contributions

they could offer in this study.

 Chapter 4

RESULTS

In this chapter, the informational and inspiring experiences of the informants of

the study which were gathered through in-depth interviews and a focus group

discussion are presented. With the following research questions, data production from

the participants was directed:

1. What are the financial challenges faced by small scale-retailers with the

presence of big players?

2. How did they cope with the financial challenges faced by the business?

This chapter is composed of four parts. First is all about the composition of our data

that has been assembled through our interview. Second part is all about the themes of

our study, how it is being classified with the help of our data analyst. Third part deals

about the answers we gathered in the in-depth interviews and focused group discussion

under each research problem. And lastly, part four includes the outline of responses

from the different informants.

Participants

Key Informants. There were eight (8) key informants in the study, five (5) gents

and three (3) ladies who are managers or the owners of their business. The participants

were given pseudonyms in order to preserve confidentiality and privacy presented in

Table 1.

Focus Group. A focused-group discussion was conducted with eight (8)

participants who were also the managers or owners of their business. Four (4) of them
are men and the other four (4) are women. The discussion was held to achieve more

learning and to develop social construction among the participants on this study. This

is also to extract the common denominator among them experiencing the phenomenon

which would help us determine the essential themes for this research. To make their

identity obscure, the participants were also given pseudonyms which were presented in

Table 1.

The key informants and the participants in the FGD answered the same set of

interview questions. Through recommendations and personal visit to their place, we

were able to get in touch with them and invited them for an interview for our studies

which then were accepted. We did get satisfying and informational answers we needed

from the interaction we made with the participants. We were able to know what their

financial challenges were when the Big Players arrived.

Categorization of Data

After the in- depth interviews and the focused group discussion, data from the

video recordings were directly transcribed and for those answers in vernacular were

carefully translated into English and is also analyzed. Three steps were being taken

during the data analysis that consists of data reduction, data display, drawing conclusion

and verification. These were done in order to identify core and essential themes about

the phenomenon under investigation (Burns & Grove, 2007).

To delete unnecessary data from the transcription, data reduction was employed

to convert those data into essential and logical material, in order to simply understand

by many (Moustakas, 1994; Creswell, 2012). In data reduction, answers from the

interview were translated, grouped and organized without using any software. Thematic

analysis was the approach used in pairing and separating data a way of sorting and
categorizing. Through data reduction, the lengthy and large volumes of qualitative data

gathered came out consolidated and manageable, easier to control and understood. We

also asked for assistance from a professional who was expert on analyzing the data. In

data display, the findings were presented in a table shown in Table 2, 3, and 4.

To establish trust worthiness, we followed the discipline suggested by Guba and

Lincoln (2000), in answering accuracy during the data collection which includes

credibility, conformability, transferability and dependability. As to credibility, we

established it through member checking, peer debriefings and triangulation. We

ferreted out the data first by providing the participants a copy of transcripts of the

interview and FGD proceeding. After they signified their approval by signing the

participants’ verification form. In the peer debriefing, brainstorming together with

colleagues as conducted for the categorization of the emergent themes.

Difficult terminologies were given clearer and appropriate results. Lastly,

triangulation allows confidence for the conclusion of the study. Data gathered from

related literature, respondents of in-depth confirmed triangulation coming from m

varied resources.

As conformability and dependability, we have an adviser through keeping

records on how qualitative study conducted. This is to review what has been done and

to consider alternatives plan in verifying interpretations and assumptions. As for

transferability, sufficient information on the context was carried out on the bit not

generalizing base in the information from the participants in mentioned setting.

A study is trustworthy of the reader, of the research report judges it to be so, making

the research worthwhile.

 Table 1

Participants’ Information

Assumed Gender Years in Study Group

Type of Products
Name the field

Athena Female Grocery Items 20 In-depth Interview

Ron Male General Merchandise 18 In-depth Interview

Newt Male Household Items 35 In-depth Interview

Maki Male Grocery Items 25 In-depth Interview

Aji 3 Female Household Items 7 In-depth Interview

Margareth Female School Supplies 15 In-depth Interview

Spongebob Male General Merchandise 12 In-depth Interview

Harry Male General Merchandise 7 Focus Group Discussion

Hermione Female Household Items 9 Focus Group Discussion

Spiderman Male Grocery Items 18 Focus Group Discussion

Percy Male General Merchandise 10 Focus Group Discussion

Annabeth Female Grocery Items 9 Focus Group Discussion

Thomas Male Household Items 6 Focus Group Discussion

Grover Male School Supplies 8 Focus Group Discussion

Adeline Female General Merchandise 42 Focus Group Discussion

Veronica Female General Merchandise 20 Focus Group Discussion

Research Question No. 1: What are the financial challenges faced by small scale-

retailers with the presence of big players?

In the in-depth interview and focus group discussion, questions were asked to

the participants for the discussion for the first research problem in order to draw

comprehensive ideas. To do so, the following questions were asked: (a) Does the arrival

of the ‘Big Players’ give positive or negative impact to your business? How? (b) How

did the monthly turnover/sales increased or decreased since the opening of the

shopping malls? (c) What are the financial problems, if any, that you’ve encountered

during the arrival of the big establishments in your place? Is there an increase in the

rate of the trade discount you offered? (d) For how long did you experienced recession

after their arrival? (e) Did you came to the point where you have to close your business
because of the effect? What then are the factors that made the business reached its

struggling point?

And through the data we gathered from the experiences of our participants we

came up into four themes as presented in Table 2 such as Decreased on Sales and Profit,

Incapacitation to Compensate Investment, and Market Price.

Table 2

Essential Themes and Core Ideas based from the Challenges of Merchandise

Retailers amidst Big Players

Themes Core Ideas

A. Decreased on Sales and Profit

 Negative, a bit, because our sales

decreased due to some of our customers

would prefer to buy from them than us.

 Our sales, indeed, decreased. Of course,

with the existence of Mall Y and Mall X-

our competitors, our sales would

eventually go down, slowly.

 Well, we do have big competitors now

and we’ve taken some negative effects

from them. Our business performance

declined, overall.
  We were worried about where to find

finances to sustain the business since the

expenses were just the same but our sales

decreased.

 We came to a point that we can say that it

is hard because our profit had lessened.

We did not reach our target sales.

B. Incapacitation to Compensate

Investment  Sometimes, we can say that our assets are

not enough for the liabilities we owe

because of the decreased sales. And in

buying stocks, we sometimes pay more

than what we earned.

 Until now. We cannot cope up that big,

not like before.

 We were worried about where to find

finances to sustain the business since the

expenses were just the same but our sales

decreased. The problem here is where we

would be able to find money to pay those.

 The payment for the loan did not came

from the business, it’s from something

else. Our sales is not sufficient to cover

the debts and expenses.

C. Market Price

 We give discount depending on what kind

of product they buy.

 We give trade discounts, bigger than

before.

 We give discounts to gain customers

 Our price here are set very low just to

attract customers. We would mark up

only a centavo, a peso or two. We still

survived despite the expenses.

Decreased on Sales and Profit

One of the major problems faced by our participants is the decrease on sales and

profit. Sales, on the majority of the businesses, decreased since the arrival of these giant

competitors. Businesses sold less than their normal earnings and it directly affects their

profit. They tend to have it lower compared to their profit without these giant

competitors.

HERMIONE (pseudonym) shared about how their sales declined because of

customer preferences.

“Negative siya gamay kay nigamay man among

sales kay naay customers na sa ila na mupalit.”

(FGD_1-Q1)
 (Negative, a bit, because our sales decrease due

to some of our customers would prefer to buy

from them than us.)

This was also supported by HARRY (not his real name).

“Sort of negative impact kay pag-abot anang

mga malls, siyempre nianam jud ug kagamay

among sales, especially ang tao mattract baya

jud na dayon sa kung unsay bag-o.” (IDI_1-Q1)

(It gave us a negative impact because as they

arrive, our sales are slowly decreasing, especially

people get easily attracted to what is new.)

AJI 3 (false name) told about the effect of the nature of the competition to their

business.

“Nagdecrease jud ang among sales. Syempre

naa nay Mall Y, naay Mall X. Naa na kay

kakompetensya, decrease jud imong sales. Dili

pud ingon nga pinakalit, hinayhinay lang pud.”

(IDI_1-Q1)

(Our sales, indeed, decreased. Of course, with the

existence of Mall Y and Mall X- our competitors,

our sales would eventually go down, slowly.)

THOMAS (pseudonym) mentioned about the difficulty when improper business

location and entry of stronger competitors are being experienced.

 “Well, naa na man tay dagko nga competitors,

negative jud ang effect diri sa amo. Though ang

among negosyo kay dako dako kay dako gud pud

ni nga kompanya pero ang among location is not

that near sa mga tao. Compared sa mall nga

murag mas accessible jud sila no. Mga

customers namo diri kay wala na kaayo. Nihinay

jud siya overall.” (FGD_1-Q1)

(Well, we do have big competitors now and

we’ve taken some negative effects from them.

Though we have a bigger business than others,

because this is owned by a known company, but

our location is not that accessible to the people,

compared to the malls. Our business performance

declined, overall.)

RON (not his real name) talked about the struggle on covering up the expenses

with the declined sales.

“Naguol mi ug unsaon pag-apas among mga

bayronon since mao lang gihapon ang expenses

but nigamay among sales.” (IDI_1-Q3)

(We were worried about where to find finances

to sustain the business since the expenses were

just the same but our sales decreased.)

 VERONICA (false name) expressed on how hard it is to attain the target sales

given the situation of the business environment on their place.

“Wala man nuon. Kung unsay makaya sa gud sa

tindahan. Makaingon jud mi nga naglisod kay

halos gamay najud ang ginansiya nga mabalik

saamo. Wala na aabot ang dapat nga sales

namo.” (FGD_1-Q5)

(Nothing really. We are just depending on what

the store could carry. We came to a point that we

can say that it is hard because our profit lessen.

We did not reach our target sales.)

Incapacitation to Compensate Investment

This is the return of the business relative to what it had invested. Deals with the

amount you invest to the entity and the profit you get in return. This relates to payback

period which means how long did you compensated what you have invested. If a

business doesn’t have the capability to compensate, there is a high probability that the

entity will be on its bottom point. The return on investment would be low and would

often cause some trouble on accommodating the cash outflows.

AJI 3 (false name) said that their sales is not enough to compensate the liabilities

and the cost of sales.

“Usahay kay makaingon jud ta nga dili na

enough ang among assets para sa liabilities kay

nigamay gani ang sales. Tapos kung magkompra

 mi dagko ang bayad unya among halin kay

gamay lang.” (IDI_1-Q3)

(Sometimes, we can say that our assets are not

enough for the liabilities we owe because of our

decreased sales. And in buying stocks, we buy

more than we sell.)

VERONICA (pseudonym) shared that they were not able to return to their

former status until now. The return on investment is quiet low.

“Hangtud karon. Dili na jud makabawi ug dako,

dili pareho sauna. Ang uban man gud nga bisag

ginagmay, diri pa mamalit kay maoy duol pero

karon, didto na sa ila kay mas daghan pud guro

ug pilian.” (FGD_1-Q4)

(Until now. We cannot cope up that big, not like

before. Some, even buying piece by piece, would

prefer to buy here since we are nearby but now,

they go there maybe because they may have more

options.)

ATHENA (alias) supported the statement.

“Hinayhinay ang among pagrecover. Unya lisod

na jud balikon tong dati.” (IDI_1-Q4)

(We are recovering slowly and it’s hard to bring

back the past.)

RON (pseudonym) talked about the trouble on finding the funds for payments.
 “Pag-abot sa Mall X ug Mall Y mga 2015 ata

naabot na sila nihinay jud ang sales. Problema

kung asa mi mangita ug pambayad sa mga utang

and gastohon.” (IDI_1-Q3)

(On the arrival of Mall X and Mall Y, at around

2015, our sales slowed down. The problem here

is where we would be able to find money to pay

the liabilities and expenses.)

SPIDERMAN (not his real name) said about how the decrease on sales made

them struggle on compensating the borrowed capital for the business.

“Pero tungod kay perting doula rajud namo sa

ilaha, mao to nga wala namo naapas ang

expected sa sales. Among loan, wala naggikan sa

tindahan ang pambayad, sa lahi na. dili na

maapas sa among halin ang utang ug expenses.”

(FGD_1-Q4)

(But because we are located very near to them,

we did not reach the expected sales. The payment

for the loan did not came from the business, it’s

from something else. Our sales is not sufficient

to cover the debts and expenses.)

Market Price

Market Price is the price of which an asset or commodities can be sold. Because

of these giant competitors, business people would lower their prices or give discounts
to gain sales from the customer. Thus, their sales would tend to be lower to what we

they have before because their products are cheaper to what it should be.

HARRY (false name) stated that due to the discounts they gave, profit is

negatively affected.

“Kay nigamay man among sales, siyempre

nigamay pud among profit eh. Oo nagahatag mig

discount depende sa paliton.” (IDI_1-Q3)

(Since our sales decreased, our profit also did.

And yeah, we give discount depending on what

kind of product they buy.)

RON (pseudonym) shared about the real struggle as the result of discounting.

“Problema kung asa mi mangita ug pambayad

sa mga utang and gastohon kay nagapadiscount

man jud mi.” (IDI_1-Q3)

(The problem here is where we would be able to

find money to pay the liabilities and expenses

since we give big trade discount to customers.)

ANNABETH (false name) has spoken of the ineffective technique of lowering

the market price among the small stores.

“Naga-offer mi ug mas lower nga price kaysa sa

mall para sa amoa sila mupalit. Ang problema

kay dili na sila muadto sa mga mini stalls

parehas sa amoa kay didtoa na sila sa malls kay

naay aircon didtoa and para sa ila, mas

 convenient sa ilang part ang mga mall kaysa sa

mga mini sall na parehas sa amoa.” (FGD_1-

Q3)

(We offer lower price compared to the malls for

them to buy to us. The problem is they won’t

even visit us because for them, malls are more

convenient than us.)

ATHENA (pseudonym) shared about how low their mark-ups are just to gain

advantage from the bigger players.

“Ang price namo diri, as in, luoy pud baya

hunahunaon para lang naa lang juy customers.

Centavos ra ang patong, piso, dos. Makasugakod

man gihapon pud bisan sa mga baryonon.”

(IDI_2-Q4)

(Our price here are set very low just to attract customers. We

would mark up only a centavo, a peso or two. We still survived

despite the expenses.)

Research Question No. 2: How did they cope with the financial challenges faced by

the business?

After the challenges were known, the following questions were asked during

the in-depth interview and focus group discussion to discover how they managed to

stay in the competition despite the challenges they had faced. (a) What are the strategies
they applied in order to survive the competition brought by the malls? (b) What are the

steps of small business owners/managers ought to make to maintain the stability of the

business? (c) How did you manage your financial resources upon arrival of your big

competitors? (d) What are your ways to attract your customers and to increase your

profit? (e) In your observation, has the number of businesses increased, declined or

remained the same since the opening of shopping malls?

From the data that we collected using the above questions we came up into four

essential themes as shown in Table 3. These are Marketing Strategy, Friendly Approach

to Customers or Sales Talk, Cut Down Expenses, Financing and Diversification.

Table 3

Essential Themes and Core Ideas based from the Coping Up Stage of the

Affected Merchandise Retailers

Themes Core Ideas

A. Marketing Strategy

 That is what we prioritize- cheaper

product costs and saleable.

 Most of the most common items they buy

are some basic necessities.

 We have several items here which are not

available in the malls. We also have

wholesale, we still have customers. Their

mind-set is that they can buy at a cheaper

 price compared on the products they see

in malls.

 Observing on what people really need,

and make prices cheaper. We are updated

with the people’s needs.

 That’s why we set promos like in

bundles, soap and shampoo for example

 In our business, we ride on what is

trending in the new generation to make

the business stable and can still catch up

with malls.

B. Friendly Approach to

Customers or Sales Talk  And of course, we maintain our

relationship with our suki.

 Customer loyalty and how we take good

care of our customers.

 Our customers. We have suki since we

operate for almost 50 years already. They

are our long-term suki

 We just sales talk, fooling them just to

make them buy, even a needle.

 And that is one reason we can have our

sales because we have direct contact with

the buyers.
C. Cut Down Expenses

 We lessen our expenses. If it’s nothing-

important thing or expenses, we get rid of

it.

 We have lessened the expenses and did

adjustments so that it will not exceed the

income.

 The sales decreased but not to the extent

that it will go bankrupt. This land and

building are theirs, so less expense.

 We cut down numbers of employees.

D. Financing

 We always add capital. Especially when

your stocks are not yet sold and new ones

arrive. Of course, we have to add.

 We had loan for additional capital

 Our capital was aided by loan. We bought

this place because if we will just rent, it

would cost much.

 To be honest, because the owners are

Chinese, they borrow-pay and lends

money to their co-Chinese. So, they

borrow then pay, borrow then pay. So,

they then joint forces to help their co-

Chinese.
E. Diversification

 We enter into contracts with schools. We

visit them personally to ask what they

need, we let them borrow for payment,

then give them the receipt and we’ll just

wait for the cheque from DepEd.

 We give patronage refund, credit lines for

our members and at the end of every year,

since we have lending, so we declare

dividends that’s why our members would

receive much from investing in our coop.

 So some of our inventories were

transferred to the other branch where it is

more saleable. What we focused on now

is our school suppliers and the pharmacy.

We also added hardware because we

think it much demanded especially on

construction materials.

Marketing Strategy

Marketing Strategy is a must in the business, the organization should be able to

find the best way or approaches that can lead to the customer to be their solid customers.

Businesses must be able to find ways and techniques for them to sustain their business.
 SPONGEBOB (pseudonym) have taken the course of action needed for the

business to aid its dropping performance level.

"Provide kung unsay needs sa community. Una,

duna miy ginatawaga ug monitoring for

customer needs and customer requests. What is

the demand sa mga customer or buyer. Mao lang

na among ginahatagan ug pansin. Products nga

barato lang ang cost unya palitonon.” (IDI_2-

Q2)

(We provide the needs of the community. We

have this so called monitoring for customer needs

and customer requests. The demand of the

customers or buyers. That is what we prioritize-

cheaper product costs and saleable.)

PERCY (false name) told us about the items that they prioritized in low pricing.

“Siguro ang pinakatuyo jud nila diri kay barato

lang ang among mantika, asin, mga asukal,

harina. Basta kanang sa pangluto. Daghan pud

diri mamalit anang mga sabon. Murag mga

necessities jud kasagaran.” (FGD_2-Q4)

(Maybe their primary reason of buying here is

our cheaper cooking oil, salt, sugar, flour or

anything for cooking. Several would buy soap

 here. Most of the most common items they buy

are some basic necessities.)

The same with NEWT (not his real name) where they offered products that are

mostly needed during different events and also cheaper.

“Yes, depende mana sa imong kuan day, we

increase our customers by common friends or

kanang mga nakaila lang nimo. Kanang one, like

this one promotion, like buy 1 take 1, like

magobserve kanang mga items na kinahanglan

sa mga tao. Unya kuan kanang barato pa. Unya

mga needs sa mga programs, unya kanang

gikinihanglan sa mga students like medyas na

puti, o gloves na daghan. So updated on mga

needs of the people around.” (IDI_2-Q4)

(It will depend upon you on how you attract

customers. We increase our customers by

common friends or acquaintances. We promote

our products through “buy 1 take 1”, observing

on what people really need, and make prices

cheaper. Some needs in school like what they

needed during programs, like white socks or

gloves in bundle. We are updated with the

people’s needs.)
 ADELINE (alias) said that they’ve taken the safety measures to stay in the

competition by attempting to market promotional bundles with lower prices.

“Daghan uy. Kay abi man namog madown na jud

ning tindahan. Mao to nga naga-bundle promo

na mi, sabon, shampoo. Mao na among

ipangbundle.” (FGD_2-Q1)

(We had several ways because we thought we

would go bankrupt. That’s why we set promos

like in bundles, soap and shampoo for example.)

ANNABETH (pseudonym) shared their own tactic which is selling products

according to public demand.

“Ang sa business kay naga sabay mi sa uso sa

karon nga generations para stable ang dagan sa

business then dili mi mabiyaan sa mga malls

kumbaga makasabay mi sa ilaha.” (FGD_2-Q2)

(In our business, we ride on what is trending in

the new generation to make the business stable

and can still catch up with malls.)

Friendly Approach to Customers or Sales Talk

In the business world your customer is the most important person you need to

care. Without them you cannot earned a profit, so, we must able to serve them with

proper care and approach them in a friendly manner, maintaining a good relationship

with them is good for your business.

 HARRY (not his real name) talked about how their regular customers helped

them on staying in the competition.

“Kuan, kanang siyempre mas gamay among

price compare sa ila, unya makahangyo pajud

among customer sa amo. Unya siyempre, naa

man miy suki ginamaintain namo among

relationship sa ila.” (IDI_2-Q1)

(Of course, our price is lesser compare to them,

they can also ask for discount. And of course,we

maintain our relationship with our suki.)

HERMIONE (false name) have shared about giving their customers the feeling

of importance just to maintain the loyalty.

“Siyempre, cheaper price, customer loyalty ug

giunsa namo pagpalangga among customers.”

(FGD_2-Q4)

(Cheaper products, customer loyalty and how we

take good care of our customers.)

ADELINE (not her real name) also shared the same thoughts.

“Ang among customers, naa jud mi’y suki kay

dugay na man kayo ning tindahan mga 50 years

na. suki nga karaaan na jud kayo. Mas barato

among baligya. Ug kadtong among mga services

gud sa customers.” (FGD_2-Q4)

 (Our customers. We have suki since we operate

for almost 50 years already. They are our long-

term suki. Our cheaper pricing. And our services

to our dear customers.)

AJI 3 (not her real name) have explained on applying the sales talk on the

business.

“Mangustomer jud. Sales talk, atik atik sa

customer para mupalit bahalag dagom isa

kabuok.” (IDI_2-Q1)

(We just sales talk, fooling them just to make

them buy, even a needle.)

NEWT (pseudonym) stated their advantage because of having direct contact to

the customers.

“And that is one, one reason also nga why we can

have our sales,beacause my direct contact ba sa

mga proprietors the buyers could ,naa silay

personal contact naa sila personal

communication na makahangyo. Oh? Sa mall?

Makahangyo ba sila? Bisan 1 centavo? No they

cannot? So mao na that is one of the advantage.”

(IDI_2-Q1)

(And that is one reason we can have our sales

because we have direct contact with the buyers.

A personal contact with the proprietor would

 enable them to avail discount. In the malls? Can

they ask for discount? Even 1 centavo, they can’t.

So that is one of our advantages.)

Cut-down Expenses

An expense is needed in the business but too much expense is not a good

indicator of proper management. For the participants cutting down expenses is one way

to stabilize their business.

HARRY (pseudonym) disclosed one of their strategy – to lessen the cost of

expenses.

“Nagless mi ug expenses, ug dili kailangan na

mga galastohonon ginawala namo.” (IDI_2-Q3)

(We lessen our expenses. If it’s nothing-

important thing or expenses, we get rid of it.)

SPONGEBOB (false name) cut down their expenses and made adjustments to

keep the flow of the capital.

“Additional ug capital? Wala man. Bali nakaroll

lang gihapon siya. Nagless mi ug expenses. Naa

tay mga adjustments para dili muexcess sa

income.” (IDI_2-Q3)

(Additional capital? None. In short, the capital

keeps on rolling. We have lessened the expenses

and did adjustments so that it will not exceed the

income.)
 He further added about acquiring properties to lessen the rental cost.

“Decreasing ang sales pero wala maabot sa

point nga bagsak jud siya. Kaning building ug

yuta, ila man pud ni so medyo minus ang

expense.” (IDI_1-Q4)

(They cannot really feel the effect. The sales

decreased but not to the extent that it will go

bankrupt. This land and building are theirs, so

less expense.)

RON (not his real name) declared that laying-off employees was one of their

ways on decreasing the expenditures.

“Ang ubang part sa among building kay

ginaparentahan amo, nagbawas mi ug mga tao.

Una nag renta ang mang inasal ug mandarin

sunod nagpasulod mi ug Quality Appliances, ang

mga brand sa among mga products kay

ginagmay nalang for example ang toothpaste na

daghan ug brand, one brand nalang ang among

gina-offer.” (IDI_2-Q1)

(We offered some parts of our building for

rentals, we cut down numbers of employees. We

sell only a particular brand.)

Financing
 Financing means fund that is added to your investments. Financial institutions

such as banks, credit unions and financing company lend money to help other people

especially business people in able for them to have money to sustain their respective

business with a promise that they will pay them in the future. Some participants lend

money to sustain their own businesses.

AJI 3 (false name) admitted that they have been adding their initial capital after

the arrival of the bigger competitors.

“Pirmenti nalang mi gadugang ug capital. Labi

na ug ang pundo nimo nga stock kay wala pa

nahalin unya naa napuy mangabot. Syempre

magdungang jud.” (IDI_2-Q2)

(We always add capital. Especially when your

stocks are not yet sold and new ones arrive. Of

course, we have to add.)

MARGARETH (pseudonym) also did the same by borrowing from the bank.

“Kuan naga loan ug capital ug additional

capital, cheaper sad among prices by 50 cents

pero dako na na sa mga customers.” (IDI_2-Q3)

(We had loan for additional capital, and we set

our prices cheaper, like by 50 cents, but it is much

for the customers.)

ATHENA (false name) said that they opt to loan and spend it for acquisition of

properties for the business.

 “Naa mi’y credit sa bangko. Pag-abot nila, kami

man ang nabungkag kay didto man amoa dapit

sa gitukuran sa Mall Y, ang capital kay among

gidugangan by loan. Among gipalit ning pwesto

kay kung among arkilahan kay murag dili kaya

oy. Ang mga items kay makaya kaya ra man kay

naa man puy ubang company nga nagahatag ug

fifteen days, ang uban kay one month.” (IDI_2-

Q3)

(We have debt in the bank. When they arrived,

we are the one that’s most affected since our store

was demolished because it is where the Mall Y

were built, and because of that, our capital was

aided by loan. We bought this place because if

we will just rent, it would cost much. Our stocks

is fine since other companies allow as days to

cope.)

SPONGEBOB (pseudonym) shared about how the owner of the business made

it easy for them to cope with the situation.

“Sa tinud-anay, tungod kay Chinese ang mga

tag-iya, utang-bayad sila ug nagapahulam sila

sa ubang mga Chinese. Kung dili pa Chinese ang

tag-iya, down na jud. So utang-bayad sila, utang-

bayad. So mao nang nagjoint sila para

 makatabang sila sa ilang kapwa Chinese. Dili

kaayo mafeel nila.” (IDI_1-Q4)

(To be honest, because the owners are Chinese,

they borrow-pay and lends money to their co-

Chinese. If it weren’t for them, our business

would go down. So, they borrow then pay,

borrow then pay. So, they then joint forces to

help their co-Chinese.)

Diversification

Diversification is a corporate strategy on which a certain business venture into a

new market or industry in which it doesn't currently operate, and in the same time

creating a new product for that new market. This was the other strategy on whom some

participant was using in able to survive in the business industry. Aside from their main

focus they have their line of services or products which are different from the latter.

MARGARETH (false name) declared that they were able to enter into contracts

with their customers and helped them to be independent from their walk in customers.

“Kuan, naga enter mig contract sa mga schools.

Naga-adto mi sa mga schools kung unsa ilang

kinahanglan, pautangon dayon namo sila tapos

tagaan namo silage resibo tapos maghulat mi sa

cheke nila na gikan sa Dep-Ed.” (IDI_2-Q1)

 (We entered into contracts with schools. We visit

them personally to ask what they need, we let

them borrow for payment, then give them the

receipt and we’ll just wait for the cheque from

DepEd.)

MAKI (pseudonym) shared on how the nature of their business helped them

managed to stay.

“Maghatag ug patronage refund, credit line sa

mga members. Ug at the end of the year, naa man

miy lending so naa siyay dividend so daghan ang

ma-avail sa member. Mao na ang panglaban

namo sa ila.” (IDI_2-Q1)

(We give patronage refund, credit lines for our

members and at the end of every year, since we

have lending, so we declare dividends that’s why

our members would receive much from investing

in our coop. that is our edge compared to them

(malls).)

SPIDERMAN (not his real name) revealed that one of their major solution is

shifting the focus of the business.

“Kung grocery lang ang hisgutan, wala miy

advantage sa ilaha, sa malls. So ang mga

inventory sa grocery kay aamong gipangbalhin

 sa laing branch kay didto mas kusog ang palit.

Ang among gifocus kay ang among school

supplies ug ang pharmacy. Nagdungag pud mi

ug hardware kay murag nikusog man pud ang

hardware diri labi na sa construction.” (FGD_2-

Q1)

(When we talk of grocery, we don’t have any

advantage to them, malls. So some of our

inventories were transferred to the other branch

where it is more saleable. What we focused on

now is our school suppliers and the pharmacy.

We also added hardware because we think it

much demanded especially on construction

materials.)

ADELINE (pseudonym) opened-up about them giving the customers the

service beyond their normal course of business.

“Daghan uy. Kay abi man namog madown na jud

ning tindahan. Mao to nga naga-bundle promo

na mi, sabon, shampoo. Mao na among

ipangbundle. Mga laing service pud. Kanang

maghatag na lang ug listahan ang mga

mangomprahay sa amoa unya kami nay

manguha, pagbalik ila kay igo nalang sila

mubayad. Gina-offer namo na kay ang mga tao

nga gusto madali labi nan ang mga taga-baryo

kay naa pay mga pamaliton lain pareho anang

feeds, bugas o softdrinks, itlog. Kana sila kay diri

nalang sa amoa mamalit. Duol pud mi sa ilang

sakayan so mas convenient mi kung daghan

silage dala. Ang price pud namo kay barato lang.

gina-anhian man mig mga supplier kay tan-aw

guro nila nga kusog among palit diri so okay pud

nila.” (FGD_2-Q1)

(We had several ways because we thought we

would go bankrupt. That’s why we set promos

like in bundles, soap and shampoo for example.

We offered other services, too like a customer

would give us their shoplist and we will shop it

for them and they’ll just come back to pay it. It is

convenient for them especially those who came

from barrios who still have other items to buy

which are not available in our store. And we are

just near their terminals so we can offer them

convenience especially when they have lots to

carry. Our products also are cheap, our suppliers

come here personally since they observed that we

are best sellers.)

 Chapter 5

DISCUSSION AND CONCLUSION

In this chapter we will able to discuss the results of the study as well as their

conclusion and the impact for future research anchored on the themes developed during

data analysis. The focused of this study is challenges of merchandise retailers against

big players.

This is a phenomenological study which focuses on what is the challenges of

those retailers against their big competitor. Moreover this study not only focuses on the

challenges but it tackles deeper on the analysis on the experiences, challenges,

strategies and coping mechanisms of the respective individuals involved on this study.

This study also investigate how do retailers survive despite of the bigger challenges

they faced.

According to Creswell (2007), phenomenology is more concern on the human

perception of the events created that was perceived in the actual world. Using these

kind of methodology, it allow us to know the “real essence” of our study which cannot

be revealed by just an ordinary observation or any means of statistical tools.

Phenomenology helps researchers to explore the concepts from new and fresh

perspectives of each of the participants. (Creswell, 1998; Sanders, 1982; Cohen, Kahn

& Steeves, 2000).

Phenomenology wants to discover the implicit structure and meaning of those

individual experiences by those people involved in this study, this methodology is really

useful especially when the topic cannot be defined by means of quantification.

Phenomenological inquiry is motivated by both humanitarian and intellectual purposes.

Researchers strive for meaningful “human sciences” about individuals and societies

rather than natural science-like knowledge. (Sanders, 1982; Von Eckartsberg, 1986;

Moustakas, 1994).

Manen (1990) added that phenomenological study aims to define the meaning

of different individuals of their lived experiences of a concept or a phenomenon.

Researchers must focus on describing what all the participants have in common as they

share the same phenomenon. The basic purpose of this methodology is to reduce

individual experiences with a phenomenon. The researchers collect data and develops

a composite description of the essence of the experiences of individuals and this consist

of “what” they experienced and “how” they experience it. Moustakas (1994)

highlighted that phenomenology must have a deep understanding of a phenomenon

experiences by sever individuals. Knowing some common experiences can be very

valuable to the participants of the study. The participants of the study must be carefully

chosen to be individuals who have all experience the phenomenon in question, so that

in the end researchers can create a common understanding.

In the interview researchers become the learners and the participants become

the expert. Thus in conducting the study the participants play the most important role,

as this study is a qualitative analysis of a narrative data which are different in

quantitative methods of research. Participants were asked in an open ended questions,

so that their specific experiences can be distinguished. The respondents of this study

were the merchandise retailers of Nabunturan who have been in the business for a very

long time. The participants through an in-depth interview and focus group discussion

share the same experiences, strategies and coping mechanism. Also we highlighted the

challenges and strategies of those business people in able to get a reliable information

for the results of this study. In order for those participating individuals not to be
hesitated and feel awkward we gave them the assurance that we are conducting the

study with proper ethics in conduct of the investigation and we are maintaining

confidentiality.

In conducting the study we feel that there are participants who are

uncomfortable in sharing their experiences and in the same time they feel awkward if

they are directly been questioned but because we gave them the copy of our questions

beforehand, the interview went smoothly Each of them gave the answer we’ve been

asking for. They participate well despite of the awkwardness they feel. Their

participation gave us these following themes which are the results of the information

we get from them.

Decreased on Sales and Profit. Most of the business were operated for more

than how many years, for those years they operated, their sales and profit were

extremely good. Despite of the other competitors who are arising they are able to

maintain their good profit, but when those giant business came around and took

advantage of investing their business in that locality, businesses around the capital feel

the burden of decreasing sales and profit. Despite of their long years in the business this

tragedy still affect them. Most of them answered that their sales and profit have been

positively decreasing since the arrivals of this big business. They sold less than what

they earn before this incident happen. As we asked them they quickly answered that

the major effect of this events to them was their business is now having a decreased on

sales and profit. Negative revenue variances occurs when revenues from a business

project are lower than expected. This may occur because the expected budget was

different from the actual budget and the return on investment was not high enough as it

was. It may occur also when the income reports from one year are lower than the

previous year. (Lacoma, 2018).

 The two main reasons for a decline in operating profit are fairly easy to pinpoint

-- you either have a decrease in sales or an increase in expenses. Understanding the

different reasons these occur can take more digging before you can stem the tide of

profit erosion. Understanding common factors that reduce business profits will help you

take steps to address them and spot problems quickly before they get out of hand,

(Ashe-Edmunds, 2018), therefore, the market must always be considered a vital factor

in revenue variance. Sometimes a business can plan out every move and the market can

still abruptly shift, leading to a loss in sales or, often, a transposition in sales as

consumers begin to prefer one feature or product over another. This is largely outside

of the control of the company and can always create negative returns on a project that

was thought to be successful – and vice versa. (Lacoma, 2018)

Incapacitation to Compensate Invested Capital. Due to the

decreasing sales and profit, there are certain business who cannot afford to cover up all

those expenses. There liabilities is much greater than their assets, sometimes they only

depend to what their store could carry. They have tons of loans which sometimes they

don’t know where to find resources to pay them all. For that they reason they sometimes

used their personal money to cover those liabilities they owe. It is difficult for them

because their sales has been aggressively decreasing due to arrivals of these giants.

They cannot bring back all those losses they have. If before they are known to be the

most expensive retailer now they are just a mere business who only look for an income

to sustain their business. And those income cannot compensate anymore to what they

have invested on that business. Rhodes and Shelter (2009) discusses that we don’t have

an easy solutions and direct effective strategies to anticipate crisis effects. In the wake

of the economic crisis, many firms were faced with severe threats that called for an

immediate action to ensure firm survival. When choosing the measures to cope with the
crisis situation, responsible decision makers were confronted with challenge to manage

well the trade-off between the benefits and costs of short term crisis. On the one hand,

short term action like massive cost-cutting, cash generation, shorter reporting cycles,

increased employee monitoring and tight budget control seemed necessary to cope with

a decline in orders and revenues and to ensure an appropriate and well-coordinated

response to changed environmental conditions. On the other hand, such short-term

measures might damage the long-term growth potential and go at the expense of the

long-term health of the firm as key stakeholder relations may be irreversibly harmed.

(Asel & all, 2010; Bourletidis, Triantafyllopoulos, 2014)

Market Price. Bigger competitors means strong competition. Due to those

declining sales market price were greatly affected. Business people tend to lower their

price for them to attract their customer and have their sales. They usually don’t care

how much is their mark-up, they only care was to have a sales so sometimes they lower

their profit and in the same time they gave bigger discounts than they usually could.

We’ve been witnessed how big were the discounts they gave to their customers. We’ve

been seen also how cheap their prices were. Business individuals took the risk of

offering a lower prices despite of the possibility that they may receive a smaller income.

It has been said by Montenegro (2017) that the price has a major influence on

sales. In essence, a high price can maximize short term profit, while low price can

maximize long term profit, as it generally attracts more customer and helps the business

gain market share price. There are businesses who use discount pricing to sell low

priced products in high volumes. With this strategy, it is important to decreased costs

and stay competitive. Large retailers are able to demand discounts as they buy in bulk,

but not alone discounting can compete with other business (Melanie, 2017).
 Consider product positioning before choosing a discount pricing

strategy. Consumers can often associate low price with low quality, even more true

when the brand name is not familiar. Implementing a discount pricing strategy increases

the chance that your product will be perceived as lower in quality. While you may gain

customers, that make decisions on price alone, other customers may choose competitor

products because of perceived quality. Low prices may drive sales for a limited time,

but do not build customer loyalty. When a lower priced alternative comes along, you

may lose your market share. Competitors can simply match your prices, or beat them.

When prices have been driven down to absolute low prices, it is difficult to raise prices

again, especially if your product is perceived as being lower in quality. (Melanie, 2017)

In the information we gather through the in-depth interviews and focused group

discussion, we came up to the following themes about how the participants cope with

those challenges faced by the merchandised retailers: marketing strategy, friendly

approach to customers or sales talk, cut down expenses, and financing.

Marketing Strategy. But despite of those negative effects, those effects

sometimes can be a great advantage. Lower prices means more customer, as consumer

finds way to lessen their everyday cost they tend to prefer to buy their needs in those

business who offer lower prices. Where they can also ask for a discount, not like those

malls which they cannot ask for a discount, another strategy they were using was to

know the basic needs of the individuals, those businesses around the capital were

operated by the owners also. They have the direct contact to the customers which lead

them to know directly what the needs of their customer are. Especially if there are

special events in that locality, they were the first person to know what the necessities

are. They also ride on what is in, they are updated to what is new trends of today, if the

malls has their customer loyalty card, those businesses also has their own way of
patronage card. According to Business Queensland (2016), marketing strategy will help

a certain business to realize its goals and can build strong foundation in the business. A

good strategy helps you attract customers, it can involves creating two or more ideas

which can raise awareness and sells your products. Montenegro (2017) also discusses

that when a customer went to your store and cannot find the things they need it can

create a negative impact to your customers which might lead to losses of your sales.

Overall a business must use their tactical marketing mix using the 7P’s of marketing if

a certain business can able to choose the right combination of marketing across product,

price, promotion, place, people, process, physical evidence, then your marketing

strategy is more likely to be a good success. (Business Queensland, 2016).

Friendly Approach to Customers or Sales Talk. Because of long years in the

business, owners and managers have these strong connection to the customer, they have

their own suki. They maintain their relationship very well. They took good care of

them. For them customers are as valuable as a precious stones. Their sales agent has

their good way to approach their customer, the way they entertain them was as if they

were long term friends. They talk like they know them for how many years. Yes this is

indeed a good strategy. For in the business world, customers is the most precious people

you’ve met. You need to good care of them like a good father in the family. Malls may

have their customer’s loyalty but they don’t have this kind of connection between their

agents and customer like those business people who treated their customer as their long-

time friends. Communicating and establishing relationships are really the essence of a

business. They don’t have to take a long time and often happen in an instant. Do not let

your customer be your enemy. More than likely, a negative relationships has been

created before any business are transacted. These connections, as simple and quick as

they are, are moments of truth for the customer. (Dummies, 2010).
 Your early customers are the most important relationships of your business’ life.

Why trust them to a software program that wants to drip vague, soap-boxy messages to

them at predetermined intervals? Get on the phone, skype, e-mail, Twitter, Facebook,

LinkedIn or livechat and hear what they are thinking. If you can, walk out to the front

of the store and talk to them yourself! For new (and new-at-heart) businesses your

market research, sales efforts, customer service and brand development are all coming

from that same relationship. Spend as much time as you can nurturing it. (O’Hara, 2012)

Cut Down Expenses. In able for the business to survive, they must have their

proper cost control. Those businesses who experiences unsustainability in their

business, cut down their unnecessary expenses. We lessened their expenses and did

some adjustments so that their expenses will exceed to their sales which might can lead

them to any losses. There are businesses also who have cut down their number of

employees for the business to survive. Customer communication management is a form

of business process management that focused on cutting the expenses while improving

the customer services. (Porter, 2010). It means that you can cut unnecessary expenses

which cannot affect the business those which are not important on running down the

business. When a financial institutions get fail to get it right, then the cost is high.

Consider an error-ridden letter. It sets off a chain reaction that reverberates throughout

the organization. It has the power to frustrate and alienate customers; consume

significant resources; breach compliance issues and can create unfunded liabilities;

result in inefficient customer service and jeopardize relationships. (Porter, 2010).

As you begin your quest for administrative cost savings, keep two key points in

mind:
 First, forget about finding a single idea that would radically change the cost

structure of your organization or department, thereby solving your problem in one go.

(If such an idea existed, it would most likely entail so much risk that the organization

would never be willing to implement it.) Instead, you should plan to reach your goal

with a combination of 10 or more actions.(Coyne,2010).

Second, the degree of organizational disruption caused by your

reductions will usually be proportional to the degree of cutting you do. Therefore, you

should tailor the reductions you pursue to your savings goal. Incremental ideas with

minimal impact on other departments can allow you to trim up to 10% of costs.

Redesign or reorganization ideas often eliminate the lowest-value activities, with

moderate impact on other departments, and can help cut expenses by up to 20%. Cross-

department and program-elimination ideas are usually necessary when you’re aiming

for 30% or more, but they have the greatest potential to be organizationally disruptive.

(Coyne, 2010)

Unless cost cutting is new to the company, you’ve already done away with most

discretionary, comfort, and non-mission-critical perks and activities, such as holiday

parties, event tickets, and tuition reimbursement. If that’s the case, don’t try to eliminate

more—you probably can’t. Instead, see if you can consolidate what’s left. Combine

activities like training days and celebrations into single events. Combine events across

multiple departments. Cross-schedule the use of outside resources, such as facilities or

trainers. You’ll be surprised at the opportunities. For example, one university

determined that Parents’ Weekend and Homecoming were both far too valuable to

eliminate—but found that it could save close to 40% of the combined cost by holding

the two events on the same weekend. (Coyne, 2010)

 Financing. Some businesses are incapable enough to compensate their

losses. They need to add capital in the business. Not only because they are incapable,

but because there are business who have been demolished because the location on

where they stand for how many years is the same location on where those giant business

where to be built and because of that they need extra capital to refinance their business.

So most of the business had their loan to add up to their capital. Capital planning and

capital structure are identified with financing and speculation choices of the firm. The

corporate fund writing in the past has concentrated broadly on the investigation of long

term budgetary choices, especially investments, capital structure of the company or

valuation of choices. (Raheman and Nasar, 2007). As the three general authors

(Robbins and Pearce 1993), Michael and Robins, 1998, Latham 2009) discussed that

the most important victims of a prolonged crisis, such as economic downturns, because

of limited resources and dependence on banks’ lending, paying such high interest rates

are the SME’s. Adding to the financial aspect, their relative shortcomings in terms of

technological, managerial and human capabilities may reduce their capacity to

overcome the economic crisis. On the other hand, their greater dependence on (fewer)

customers and suppliers and markets may lead to increased difficulties in maintaining

their activity in the face of the crisis. Papaoikonomou & all, (2012) argue that in this

context, most SMEs suffered from demand shock (Butler and Sullivan 2005,

Papaoikonomou & all, 2012; Robbins and Pearce, 2010; Latham 2009; Michael and

Robbins 2011).

Diversification. Diversification is defined as a process on which a certain

business is venturing into a new line of business by means of acquisition or internal

business development. It is also a survivalist strategy to counterbalance the decline in

the original business. As the time pass by after the arrival of those giant competitors

most of the business around the capital were affected. And some of them are

incapacitate to compensate all the losses they had, so instead of investing more capital

to continue the business they diversified their business into a newer kind. A new line

of business which cannot be seen to those establishment like food related businesses,

change of tires and wheel service and many more. There are also businesses on which

they are not only focusing into one services but they can provide an extra kind of

services to the customers like aside from selling supplies they can also made a

customize plaques, medals and tarpaulins under the specification of the customer.

The diversification decision depends on the division’s productivity and on trade

demand shocks. The use of plant-level knowledge and taking productivity and optimum

firm size under consideration, they notice that the resource allocation of more wide-

ranging companies is in line with values increasing. Gomes and Livdan (2012) develop

a dynamic model of optimum company behavior, within which diversification may be

a value-maximizing response to increasing firm age and growth. In their model,

companies diversify for 2 reasons. Firstly, once an exact time span, investment in an

exceedingly firm’s current business is not any longer profitable, in order that

diversification becomes a rational strategy for companies that have too little profited in

their core business. Secondly, distributed companies will use economies of scope,

because of declining mounted prices of production and eliminating redundancies across

completely different activities.

Gomes and Livdan (2012) argue that the endogenous choice mechanism - that

companies diversify after they become comparatively unproductive in their current

businesses - accounts for the discount on the worth of distributed companies. Bernardo

associated Chowdhry (2012) provide an evidence for the diversification discount as an

implication of their real options framework, they predict that companies follow an exact

life cycle, from being specialized in discovering broader investment opportunities, and

eventually ending up either focused or diversified, once having learned regarding their

resources throughout this method. Provided that young companies have a lot of to find

out regarding their resources, their volatility of resource uncertainty is higher, that

results in a better value during this real options approach.

Yan et al. (2010) give empirical proof of the worth of internal capital markets

in an exceedingly depressed capital market setting. Their study, however the investment

of centered and distributed companies is full of deteriorating external finance

conditions. They concentrate on the diversified firms’ ability to substitute expensive

external capital with comparatively cheaper internal capital. In an exceedingly cross-

sectional analysis over the amount 1985 to 1997, Yan et al. (2010) notice that company

investment solely declines for centering companies as a result of hyperbolic finance

prices at the political economy level, whereas it remains constant for diversified

companies. Hence, diversified companies appear to possess a monetary advantage over

single-segment companies, even after they don't have any price advantage in raising

external capital. This finding is unlikely to be driven by either systematic variation in

firm-characteristics of centered and distributed companies or by general variations in

their investment opportunities. Rather, it suggests that multisegment companies appear

to take advantage of associate improved investment potency of internal capital markets

throughout recessions.

Yan et al. (2010) notice that the inner capital allocation of distributed

companies becomes comparatively additional economical throughout depressed market

conditions. Moreover, the surplus values of distributed companies are less negatively

affected than those of centered companies, once external capital becomes additional
expensive. Hence, Yan et al. (2010) argue that internal capital markets appear to make

vital worth for distributed companies throughout recessive periods. In an exceedingly

connected study, Hovakimian (2011) seeks to determine whether or not the potency of

internal capital allocation in distributed companies depends on their ability to boost

external capital over the amount 1980 to 2008. In line with Yan et al. (2010), he finds

that the investment efficiency of distributed companies improves once external capital

markets are distressed. The proof suggests that in recessions, distributed companies

modify their capital allocation in favor of their high-q segments, whereas cutting

investment in segments with lower q’s. These enhancements in investment efficiency

are considerably higher for financially forced companies. Binding monetary constraints

apparently improve company investment behavior by reducing free money flows

beneath social control discretion, thereby limiting potential over investment.

Especially, given a restricted quantity of capital, distributed companies appear to

exercise the precious possibility of transferring capital between divisions, thus on

defending their additional valuable investment comes at the expense of unprofitable

ones.

Implication for Practice

Competition is one of the biggest challenge in the business world, from small

competitors to a larger one, each of them can either help your business succeed or not

or it may a way to generate a new thing. For us as a future accountant it can be a way

for us to show what we are capable for. We can learn so many ways on how this

individual succeed despite of the tight situation they are facing for a long period of time,

for learning from our experience and from other people can be our edge someday, for

experience is the best education every individual could have. Having this kind of study

is one of the greatest experience we could ever had, we learned a lot from every
participants on which if ever someday we would continue our path leading to us as a

successful accountant could be a use in any possible means in every situation we may

face.

In seeking for the challenges faced by every business who has been operating

for a very long time upon the arrival of this giant competitors, three problem were

common among the respondents, Decreased on Sales and Profit, Incapacitation to

Compensate Invested Capital, and Market price, this was the result of the big

competition brought by the giant competitors upon their arrivals, but despite of this

kind of situation the participants showed that they something they could offer to solve

or minimize the problem.

Marketing Strategy, it is common for every business to have their own

marketing strategy to sell their products or services. Each and every business has its

own unique way of selling their respective product or services in order to gain sales. As

an accounting student we have learned that aside from the four fields in practice where

we can able to use our skills and abilities as an accountant, our profession has been

evolve to a greater scope through periods of time. We have this specific field where can

use all the lessons we’ve learned from our experience, this is the field of consultancy.

In this field we can able to provide suggestions and recommendations to other

businessmen who may have suffered any problems in their business. And all the

information we gather from this study, all the strategies used by our participants may

able to help us and other people in the future. For there are a lot of areas in our country

who have still don’t have any malls or any giant competitors that emerge in their

respective vicinity. Through the means of consultancy we can use this information to

guide every business especially small businesses who may suffer the same threat, on

how they can able to survive the competition. We can be a tool to any client to not just
survive but to stay in the business and faced all the matters they faced however how big

their competitors may be.

In the fields of accountancy, every accountant must have the ability to handle

their respective client, they must able to know what must be the proper way to approach

them, especially if you are in the fields of consultancy where there are client who are

hard headed and stubborn, you must able to know how to approach them, so that in the

same manner you can able to determine what must be the specific problem the client

may face, and sometimes also a client may consult you but they don’t really know what

their problem is so you need to find a way to know the possible problem and solutions

by means of talking them in the most suitable way, same as what we did by our

participant they know what are the needs of every individual by means of talking them,

for there are also this kind of customer on which they forget what must be the item they

need to buy ,and their they have this saleslady suggesting to them every item they have

with the hopes that the product the customer want is in their store.

Cost Management Accounting, in this field we’ve been taught the importance

of cost and on how to properly allocate them in order to gain profit. It has been natural

for every business to eliminate unnecessary expenses to reduce cost. There are a lot of

ways to eliminate this kind cost which every business may incur. If you are in the

management accounting field your focus is the internal needs of the business this means

that it is your responsibilities to properly manage every transaction of the business in

order to prevent any loss, fraud or error. Without proper control in the internal

management, unnecessary expenses may occur, management accountant must analyze

every transaction, and they must apply the necessary ethics as accountant to prevent

any malicious acts. They must analyze if the business has the need to have so many

employees, are this individuals helpful to the company? Are those fancy things that has
been given to the managers and suppliers necessary? Are these expenses not really

excessive? And so on. This are the very few questions that must be internalize by any

management accountant in order to prevent excessive cost.

As an accountant traditionally it is our duty to record, classify and summarize

every transaction of the business and to make a financial report that can be used as a

tool in making an economic decision. Through the financial report, the entity must

decide whether they must refinance the business or not. If there are any intentional or

unintentional errors in making the financial report it can greatly affect the business,

doing such so is illegal and violation to the rules in the code of ethics of being an

accountant. For there are a lot of businesses that they used an accountant in doing

malicious acts to manipulate the report. They intentionally mislead the users of the

reports for a reasons especially if that certain reason is to avoid paying higher taxes.

However in the end it is only the decision of the accountant if he must follow such

illegal acts or must do the right things an accountant should do.

Implication for Future Research

This study shows what are the challenges faced by merchandise retailers amidst

big players, its importance and benefits. In line with this it must be acknowledge the

importance of those challenges and strategies who are facing bigger competitors which

can give an impact in the performance of the businesses.

On the Philippine Government. The government is dependent on the income of a

business, taxes which are impose are the life blood of our economy, without these taxes

our economy cannot survived because it doesn’t have any funds which can support the

need of our country. So it must be very important that the government must ensure that
the owners will provided enough knowledge on how they can able to survive in this

kind of situation , especially to those areas where infrastructure are about to grow.

Government can provide seminars that offer business individual with the proper

knowledge on how to face this bigger challenges.

On the Community. Community is where the market can be found. The market is where

the consumers and the suppliers met. In this place entrepreneur can able to find

information they can use for the future. The realization and importance of how to face

bigger competitors and how to cope with it may give the community the chance to

provide the immediate help for those entrepreneur in regards of this kind of situation.

Implications for Future Research

In as much as this study where concern in the business individuals in the locality of

Nabunturan, Compostela Valley, and the following researches are recommended:

First, since the findings of this study are not generalizable between the sixteen

participants, future research may be conducted on challenges of merchandise retailers

amidst big competitors with another group of participants in order to strengthen the

validity on the findings of this study.

Second, future researchers may conducted in some other places in the Region

XI and other regions to add more information and insights from other merchandise

retailers on the respective places.

Third, future research may be done by conducting a re-interview with some

other individuals to find out if their views have not change in about challenges of

merchandise retailer’s overtime.

 Fourth, a different study may be conducted, investigating how merchandise

retailers faced the challenges and survive amidst the bigger competitors in their own

respective way.

The results of this study were collected from the voices of the owners, managers

and supervisors of their respective businesses who have the knowledge on the operation

of the business. Further related or similar study may be conducted in order to confirm

the results of this study.

Conclusion

Winston Churchill once said, “Success is not final, failure is not fatal: it is the

courage to continue that counts.” This is what we saw in the eyes of those who

struggled, pained and bruised yet still chose to get up and conquer. This study was

conducted not just to know but also to learn how the entrance of the big players affect

the existing retail stores and what they did to keep their business alive.

Everyone has their downfalls and uplifting moments. Most of the time, we are

battling with the uncertainties of life. Sometimes, we overcome it, sometimes, we don’t.

But despite the break downs, we still strive to achieve our main goals. This could be

observed in our participants. As we conducted the interview, we were able to dig deeper

on their situations, one that even their customers can barely see. And we’re very

thankful for we have given the chance to earn their trust and though some of them

maybe felt awkwardness but still they willingly participated the activity.

From the data we gathered, we came up with a conclusion that most of the

existing retail stores were negatively affected by the arrival of the big players in

Nabunturan, ComVal Province, which we find normal when we talk about business

competition. We were also able to determine the challenges they were involved in at
the time of their (big players) entrance. As the problems arise, different entities had

their distinctive solutions, and with that, they, somehow were able to cope with those

economic trials.

In addition to those theories we provided coming from the different studies from

across the world, this research of ours had proven that not all retail stores were affected.

There were some retailers we interviewed who stated that they were not moved because

of some reasons. One was they sell products that even though similar to what malls

offer, but then they are more complete, lots of stocks, and most importantly less

expensive than on what could be bought there (malls). Also, because they are

economically stable already even before the big players arrived. Another was they have

their loyal customers who still patronizes their products even though it is much

convenient when they would buy in the mall, and the likes.

We were able to know their standpoint regarding the arrival of such competitors,

their way of survival and the stories behind the success of overcoming such. These

learning experiences shared by our respondents serves as an inspiration to every

business entities that no matter how small, with great determination and eagerness to

succeed, they would be able to pass through those inevitable changes that might happen.

They must also possess skills and techniques on how they would handle the said

situations.

This research showed that in addition to observing the marketing strategies of

different entities, there should also be an equal attention given to the financial aspect

for it is the bloodline of the business. That whenever there would be unexpected

changes in the economy, a business man should look after the financial state to cover

some unexpected expenses and other concerns which uses money. The
accomplishments of a firm are dependent on how they make up their marketing plan

and how effective it is when applied.

The contribution of this study lies on the challenges faced by retailers upon the

arrival of the ‘big players’ in their market. It also open doors for future researches

regarding the effects on business competition and how they are solved and other further

researches that gives light to a wide path of business competitions of SMEs across the

world.