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ECO 201 : introdution to microeconomics Assignment

   

Added on  2020-04-21

9 Pages1886 Words63 Views
Running head: MARKET STRUCTURE OF UK’S RETAIL INDUSTRYMARKET STRUCTURE OF UK’S RETAIL INDUSTRYName of the StudentName of the UniversityAuthor’s Note
ECO 201 : introdution to microeconomics Assignment_1
1MARKET STRUCTURE OF UK’S RETAIL INDUSTRYTable of ContentsIntroduction......................................................................................................................................3Market Structure of UK’s retail sector............................................................................................3Success Factors of Sainsbury when operating in UK’s retail industry............................................5Conclusion.......................................................................................................................................7References........................................................................................................................................8
ECO 201 : introdution to microeconomics Assignment_2
2MARKET STRUCTURE OF UK’S RETAIL INDUSTRYIntroductionThe aim of this report is to highlight on the structure of market of the UK’s retailindustry. The company that is chosen for this report is J Sainsbury Plc that has been operating inUK’s retail industry. This organization is the second biggest supermarket chain in this countrywith total share of 16.9%. This entity is split into three sectors that include- Sainsbury’s Bank,Sainsbury Argos and Sainsbury supermarket ltd. Market structure is defined as the degree andnature of competition for the products in the existing market. Several determinants of the marketstructure are- product nature, number of purchasers and sellers, economies of scale andconditions of entrance and exit. There are various kinds of market structure including-monopoly, monopolistic competition, perfect competition and oligopoly. Market Structure of UK’s retail sectorThe retail sector of UK has oligopolistic market structure as few companies share thelarge proportion of this industry. The four biggest retailer of this nation are –Tesco, Morrison,Sainsbury and Asda. Some vital feature of this market structure includes- interdependence oforganizations in making decision, existence of price rigidity, less number of firms, production ofeither differentiated or similar commodities and significant hurdles to entry (Yu, Ramanathan &Nath, 2014). As there is less number of retailers in this industry, the action of each retailer affectsthe other. In addition, the organization in this industry holds substantial market share, whichresults in higher degree of market concentration. Moreover, the sellers of this industry try togather information about the target market in order to gain competitive advantage. On thecontrary, the purchaser in this retail industry has imperfect knowledge about price as well asquality of commodities. Due to fierce competition in terms of price prevails in this UK retail
ECO 201 : introdution to microeconomics Assignment_3

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