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Indeed, in 1993 the top 5 discounters accounted for over 70% of total industry sales. Consequently, barriers to entry are high. Other barriers to entry include the high capital expenditure requirements of leasing or buying the stores; promotional costs; vast capital costs of leasing or buying warehouses and distribution channels in order to buy and store the product; costs of training and hiring the work-force to provide high-quality customer service. Finally, the threat of subsitution is high, for all the merchandize is readily available at many types of stores; this reinforces the need to compete on prices, costs and customer-focus...
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