Market Structure and Economic Factors in the UK: A Case Study of Penny Market

Penny Market

Contents
INTRODUCTION...........................................................................................................................1
1.Explain the market structure in the UK within which the company will be operating............1
2. What are the economic factors within the UK that will affect the business of the company? 2
3. What are the likely impacts of Brexit on the business operations of the company?...............4
4. Analyse the impact COVID-19 is likely to have on the business of the company..................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Market is an area and place where organisation offer their goods and services to sell, trade
and fulfil need of target audiences so that they provide satisfaction to their wants and desires.
When organising performing the activity of the process of buying and selling commodities which
known as business. Market structure indicates to the number of companies in the market, their
market shares and other characteristics that influence the level of rivalry in the market
(Amaravathi and et. al., 2020). Market structure is decides majorly through the level of
competition which exists among the companies running the market. This written report is based
in Penny Market which is a discount supermarket chain based in Germany. Thus venture was
incorporated in 1973 and is headquartered in Cologne, Germany. It operates globally with its
estimate 3550 outlets as a retail sector business establishment. This document will consider
information about market structure of the UK in which the respective firm operate and economic
factors within in UK which will influence the business of this firm. Further, the document will
explain about impact of Brexit on the business operation of firm and impact of COVID19 on its
business.
1.Explain the market structure in the UK within which the company will be operating.
Market structure is considered as a state of market with regards to competition. The
various market structures that exists are monopoly, oligopoly, perfect competition and
monopolistic competition (Fang, Nie and Penny, 2020). All these four market structure are for
organizational intent. In respect of grocery retail industry, in UK it is considered as one of the
most fiercely competitive areas. The Penny market is a firm that operates in groceries retail
industry. The United Kingdom UK groceries marketing are worth is approx 193.6 billion in year
2019 and enhancement in comparison to previous year. Also, there are about 87,141 groceries
stores within UK. These are categorized into four such as traditional retail, convenience stores,
hypermarkets or supermarket and online channels. Also, the UK’s four largest multiple retailers
are ASDA, Morrison’s, Sainsbury and TESCO. All these have huge control over grocery market.
In addition to this, as Penny Company is a groceries retail company which operates in
Germany and planning to operate in UK. Also, Oligopoly is considered as market that is
imperfectly competitive as well as dominated through some suppliers. Moreover, respective
market structure have three key characteristics. Initially the some entity should be main suppliers
1