Retail stores, in particular large department stores, are distribution channels selling "content" (i.e. merchandise) produced by other companies, most of which are unrelated to the retail stores. Retail stores (not all) have largely outsourced the production of content. Do small retail stores with a limited market presence have a future? 

Can they compete with online platforms such as Amazon and Alibaba, and large department stores? 

Discuss. 

• Perhaps if they have a sustainable competitive advantage based on either cost leadership, differentiation or a niche that cannot be or will not be served by larger competitors o Lower costs based on lower cost suppliers (exclusive contracts) o Differentiation based on "proprietary" content - exclusive supply arrangements or own designs and production o Market presence may be limited of a regional or national level, but may be large on small local level - origins of Walmart providing wide range of products and low prices in rural communities and small urban centres not served by established retail chains.

• Exclusive contracts with low cost suppliers not likely because large competitors have bargaining advantage and superior information on global suppliers.

• Exclusive supply arrangements for content possible if dealing with small, non-mainstream, unknown suppliers or vertically integrate upstream and create their products (must appeal to customers, low or competitive costs and prices) .

• Niche strategy less likely to be successful today because of Internet and presence of Amazon and Walmart.