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Barriers to Entry: Obstacles Curb Small Suppliers Competitiveness

An article published by BizCommunity on 22 February 2017 argues that even the most efficient suppliers with competitively priced, high-quality products are unlikely to succeed because cumbersome requirements and exertion of buyer power by large supermarket chains are preventing them from getting their products to consumers.

Smaller players are prevented from effectively competing in a market in which the growth of supermarket chains in southern Africa presents important opportunities for suppliers. Some of the obstacles are a range of costs that suppliers incur before a single unit of their product is sold off supermarket shelves, long payment periods, advertising costs, cost of access to shelf space and the highly concentrated nature of the South African supermarket industry.

Read the full article here: www.bizcommunity.com/Article/196/183/157977.html