Adam has a home appliance store that sells electronics such as refrigerators, television, video recorder, vacuum cleaner, microwaves and many others. For a long time, he used cash-paying methods at the lowest price. Although he does not have many customers, the ones he has are loyal the store. However, with a new store opening nearby selling similar goods, his area his business starts to deteriorate.

Ever since the sales decreases, Adam faces operation expenses problems, since the margin of his business is not enough to cover the overhead cost like rent, salary and other payments. The fact that Adam is a very honest person and has a good relationship with customers does not stop the buyers from choosing other options provided at the new nearby store. Adam later realises that the new store actually sells electronics at a higher price than him. 

Adam is now struggling but trying to figure out the best solution to his increase his sales. He is also still figuring out whether he will change his payment methods.

Based on the above, write an essay on how Adam can improve the sales of his store. You have to include the following points:

• Adam has been using cash payment method for a long time. Elaborate on the advantages of this method.
• In your opinion, why did Adam’s customers prefer the new even though the prices are definitely higher than Adam’s?
• Suggest new ways or methods that may be effective for Adam’s shop. Make sure to elaborate on the characteristics and advantages of your idea.

Take note that the answer must be written in an essay form. It should contain at least 750 to 1000 words.

                                                                                    [20 Marks]