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MBA Essay:英国零售市场:竞争和价格战?

时间:2017-12-15 14:29来源 作者:英国论文网 点击联系客服: 客服:Damien
Many economists claim that competition is a force for good in the long-run. A market with fierce competition can exist but, on what grounds? Bigger retail players always have a tendency to get rid of the smaller ones to increase the market share. Is the structure of the market affecting the decision of buyers? Are the small grocery retailers in UK losing ground? Is the poor paying more? The report introduces market structure in UK, its characteristics and impact of competition.
What is a market structure?
A market structure is the characteristics of a market which can affect the behaviour of businesses within the market and also influence the outcome of a market in terms of economic efficiency and the welfare of consumers. The four basic market structure models are: perfect competition, monopoly, monopolistic competition, and oligopoly. (Ref)
UK grocery Market and Characteristics:
UK grocery market is worth £150.8bn for the calendar year 2010, an increase of 3.1% on 2009. There are 91,509 grocery stores in the UK. (IGD ref) These are split into four sectors, which are Convenience Stores, Traditional Retail, Hypermarkets or supermarkets and online channel. The UK's four largest multiple retailers (Asda, Morrison's, Sainsbury's and Tesco) control over 70% of the grocery market and the number of stores of the Big Four has more than doubled since 2000 making it as oligopolistic market in nature as indicated in the below diagrams.
Oligopoly market occurs when just a few firms share a large proportion of the industry. Since the market is determined by the major 4 players, they tend to compete on price and non price activities thereby either being interdependent (decision on price and output) or creating barriers to entry which in turn affects small players around the market by diminishing the range of shops such as specialist stores or independent small grocery shops.
In short, Oligopoly can be defined as a market structure where there are few enough firms to enable barriers to be erected against the entry of new firm. (Sloman) As a result of the fierce competition or price war in attaining the majority market share, grocery players in UK are non collusive in nature but enables a healthy competition. At the same time the structure of consumer society is changing leading to an increased demand for a more varied retail structure.(责任编辑:BUG)

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