1. Fierce market competition: As a chain store engaged in automobile sales and maintenance, Kaitu faces fierce competition in the same industry. The entry threshold of automobile sales and maintenance market is relatively low, and competitors can seize market share through price war and service quality competition. Kaitu may not have enough advantages to stay ahead in the market competition, leading to bankruptcy.
2. Improper business strategy: Kaitu's excessive expansion in the business process leads to the break of the capital chain, or insufficient attention to customer experience and service quality in automobile sales and maintenance services, leading to customer loss, or loopholes in management, leading to internal management confusion, affecting the company's survival and development, and thus closing down.