Market Structure and Economic Factors in the UK

MAKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
1. Explaining the market structure in the United Kingdom.........................................................4
2. Economic factors of United Kingdom that will impinge the business of the company..........5
3. Impacts of Brexit on business operations................................................................................7
4. Analysing the impact of Covid-19 is appropriately to have on the business of the company.8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Market analysis is an extensive matter of research and strategic analysis for the
organizations which are thinking to expand their business in new regions. This analysis delivers
details of market variables, competitors, customers and environment of industry. It is very vital
for any company to analyse markets effectively to begin a new journey over the latest market. In
this report, analysis of market and business environment of UK is done for Penny market, a
European grocery company looking forward to start its operation in United Kingdom. This report
analyses market structure and gives knowledge of impact of economic factors, Brexit and Covid-
19 that will affect its business operations.
MAIN BODY
1. Explaining the market structure in the United Kingdom
Supermarket industry in the United Kingdom is outlined as oligopolistic, means the market
structure is of oligopoly. It refers to the market that is flawlessly competitive and influenced by
some suppliers. Oligopoly has three major aspects. First, the few organizations must be the prime
suppliers in the persistence. Second, the oligopolistic companies must be interconnected. Third,
other new organizations should not be capable of entering in the industry. Some of the
oligopolistic supermarkets such as Tesco, Sainsbury, Morrison and Asda hold more than 75% of
market shares in the UK. Customers in this country as appreciably influenced by these
supermarkets as they deliver lowest costs, outstanding quality of service, the unethical
conspiracy and the shortage of rivals. These dominating organizations have capability of setting
prices constantly to make topmost profits in the distant future. These companies always take care
of prices because if they set up heavy unaffordable costs of products then they will face a risk
from another new entered companies will scramble their customers. There are many barriers for
new entrants in this oligopolistic structure of supermarket industry in UK. Furthermore, when the
scale improvement of supermarket scale leads to the maximizing of supply, the amount of the
products minimizes as cost reduces from the wholesalers. All-inclusive, in the United Kingdom,
the customers not at all distress about the products prices in the oligopolistic supermarkets.
These supermarkets make their services systems progressive which involves attitudes, operating
system of management and after sale services. Those supermarkets offer sufficient parking
spaces for customers, exhibit the same type of product simultaneously, consumer’s service unit
3