1. How is it possible for a privately owned grocery/food store to compete in an area surrounded by 4 major supermarkets within a mile radius? In a similar vein, read the Video Case on Raleigh Bicycles on P. 326. How do they compete against the heavyweights (pun intended) in the business?
2. A Rolex Oyster watch sells for about $900. Walmart sells a watch made in China for $12.95. They both keep exactly the same time. Rolex can sell as many of their watches that they care to produce. Walmart sells as many of their watches as they care to stock. Why, with that large price disparity is there room in the market for both?