Franchised minimarket from open competition perspectives

It's been many news recenty about franchised minimarket being closed up by the local government. The reason is they have no license which seems a bit odd. There are plenty similar shops (non franchise) which I strongly believe have no licenses either. They has been operating in years without any problems.

Futhermore, from my experience, I can't propose a license if I don't have the actual shop. So in other word, I have to open the shop before applying the license. Again I strongly believe, since they are franchised minimarket which have so many branches around Indonesia, they know these licenses requirement better than anyone else in the business.

I am sure it's not about the licenses. In fact, similar businesses in the area of minimarket scare they will get broke. Well it's kinda true also. This issues have been propagated by someone for some reasons. Let's leave them for now.

Let's look at which will benefit more. Open competition always give lots benefit to end consumer. One good example is what happen in telecommunication market. Since Indonesia let others to compete with the only one company telkom, we have cheaper deal, good customer services and good quality of the products. More companies mean more jobs and more taxes. If we look at PLN, expensive, no customer services, quality? You bet! But now since Mr. Dahlan came in, it feels that they are on the right track. I'm one of his fans. Let's us pray and hope!

Radius affecting by the minimarket won't be so far since shopping in minimarket is not entertaining. In most cases, people know what they wanna buy before entering the shop and get out as soon as they find what they're looking for. So let's say 2 km radius. Outside this radius will find other minimarkets or shops to shop. So how many people do you thing will suffer? I don't think it will be many. May be 2 similar shops within this radius. How many people will get the benefit? Plenty!

People around will get the benefit from the cheaper price and other promotions, shows, etc. Government will get more taxes especially the 10% PPN, VAT or GST. Mostly similar shops don't pay this tax. And this tax should benefit more people somehow. Staff which normally local people get better training and opportunities to improve their career such as supervisor, store manager, area manager and so on.

So so so.. More advantages than the disadvantages right? Let's the market be free and open.. It will benefit more in the LONG RUN.. One more thing, please KICK that someone arse

Sent from my AXIS Worry Free BlackBerry® smartphone


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