Sport

EC0805A
Week 4

Lecture 2 examined some of the key approaches to synopsis of the business environment. For example, Michael Porters puzzle of competitive contender based on economic theory
Competition in a sector can be defined according to:
scourge of entry
Power of buyers
Power of sellers
Threat of substitutes
Intensity of rivalry
Used to spend a penny a better understanding of whether it is good to be in an industry or not.

TASK Individually and then in groups of 3-4 people
Use Porters 5 Force model - apply it to super securities industrys.
The UK supermarket industry is a very competitive and remunerative industry.

Threat of entry - depends on the extent of barriers to entry (and exit).

reverse cost such as asda like buy unmatched lend one free will make other supermarkets do the same . Any new entrant into this market would have technical problems like finding capital to case-hardened up and competing directly with the likes of so called top four supermarkets who has already operated on a large scale. Other barriers atomic number 18 advertize and branding.



Larger supermarkets can stock and sell many to a greater extent products faster which is consistent with both their customers and suppliers preferences than smaller outlets such as small grocery stores .

Power of buyers

There are 2 distinct aspects of consumers that should be considered for the purposes of this report. First is the individual consumer, who has very small power over the industry, due to lack of purchasing power. secondly and more importantly are consumers on masse, who are a very powerful group. Social trends such as the maturement awareness among consumers about the benefits of healthy eating, and a growing entrust to eat organic food have caused very evidentiary changes to happen within the supermarket Retail industry. Buyers, as a group, are in an extremely powerful bargaining position, particularly in dictating the direction that companies must take to ensure their...If you want to get a full essay, order it on our website: Orderessay



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