Benefit for consumers of supermarkets in the UK

September 18, 2017 Economics

Benefit for Consumers of Supermarkets in the UK

Harmonizing to the BBC intelligence ( 2006 ) , the figure of supermarkets in the UK has 278,630. However, there are four prodigious supermarkets dominate the whole supermarkets in the UK, which are Tesco, Asda, Sainsbury and Morrison. They have more than 70 % market portion ( Hannaford, 2007 ) . As a consequence, assorted stores are out of concern. An oligopoly market means allowing simply few companies rival themselves ( Anderton, 2008:322 ) . In footings of Anderton ( 2008:322 ) , oligopoly market has chiefly three features, the first one is several houses bid of the whole market, the 2nd 1 is the houses exist by each other, and the 3rd one is there are some obstructions while merchandisers desire for connection. Yet, every thing has two sides. On the one manus, the supermarkets provide a lower monetary value, a superior service and convenient systems. On the other manus, shopping on the cyberspace is inefficient and consumers can non buy on the lowest monetary value.

Consumers will hold a lower monetary value in the supermarkets. The monetary value in the supermarkets may switch everyday ; hence, they will non vie with others on the monetary value, in other words, non-price competition, reported by Supermarketownbrandguide ( n.d. ) . It can be seen in Figure D4-3, the monetary value begins at the P1, the monetary value above the P1 is elastic, and one of the supermarkets raise the monetary value, other houses will non change the monetary value, therefore, this house will has market portion and gross lost, by contrast, the monetary value below the P1 is inelastic, one of the houses diminutions of the monetary value, other houses will follow, and otherwise, they will lose their consumers, nevertheless, they both lose gross ( eco-understanding, n.d. ) . Furthermore, Tutor2u said that some merchandises will hold a price reduction, for case, new merchandises and gasoline, therefore, it will attracts more consumers. Furthermore, it can be known from Supermarketownbrandguide ( n.d. ) that the supermarkets will supply some organic and Fair-traded nutrient. Overall, the monetary value in the oligopoly market can non be concerned.

From get downing purchasing to the terminal, the supermarkets have provided an admirable service. At the beginning, it provides free streetcar, which can cut down the weight of goods. Supermarketownbrandguide besides said that it can be seen several service desks around the supermarkets, they are used to supply advice and reply inquiries. Beside that, they have their ain branded goods, which can easy to see the nutritionary and allergen debut, it is one of the four PS of marketing mix, that is, the merchandise can be differ from others or maintain the same with others. After shopping, the supermarkets have home deliver system ; they are for free. At the terminal, some fast nutrient shops and eating houses around the supermarkets in the UK. To sum, the service in supermarket is an full system.

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Consumers will hold sense of convenience. Supermarketownbrandguide reports that in one of the four supermarkets in the UK, consumers can pay money by hard currency, recognition cards and debit cards. In Asda, they perchance can utilize Asda shop cards. Even purchasers can buy on the Internet. Each supermarket set their ain web site for consumers, non merely buys merchandises, but besides bestows some advices. In add-on, harmonizing to Tutor2u ( n.d. ) , the supermarkets besides prolong the clip that they open, hence consumers can buy for longer clip. Around the supermarkets, there are some Bankss and station offices, which benefit the consumers. In belief, the supermarkets bring convenient to people.

Every coin has two sides, despite of advantages ; oligopoly supermarkets have disadvantages every bit good. Shoping on the Internet is convenient, nevertheless, Supermarketownbrandguide ( n.d. ) contends that it is inefficient because the monetary value on the Internet will non change mundane, and consumers will pay money, which is the same with the supermarket, therefore, it will take to conflict. And the deadline for the merchandises has reached ; consumers will purchase them without detecting. Furthermore, Supermarketownbrandguide ( n.d. ) states that some merchandises on the Internet are different from the existent goods ; therefore, consumers will experience disgruntled. Wholly, purchasing on the Internet is inefficient.

Consumers will non hold the lowest monetary value. Anderton ( 2008: 323 ) declares that the four supermarkets will conspire with each other in puting the monetary value together to obtain net income and most of the collusion is illicit. However, the monetary value at there is lower than other little stores, hence, they can go oligopoly. Consumers can non purchase the merchandises at the lowest monetary value. All in all, consumers will non derive the lowest monetary value as the supermarkets collusion.

By manner of decision, the benefits of the oligopoly supermarkets to the consumers are undeniable in the UK, as it provides a lower monetary value, a antic service and convenient installations. On the contrary, shopping on the cyberspace is non efficient and it colludes with each other that the consumers can non have the lowest monetary value. As far as I am concerned, the active issues are perfect than the passive. The authorities should forbid the illegal collusion. Hence, consumers can buy the lowest monetary value in the supermarkets. Subsequently, the supermarkets are capable of finishing the cyberspace system, doing it more efficient.


1. Anderton, A. ( 2008 ) Economics ( 5th Edition ) . Harlow: Pearson Education ( Access day of the month: 29th Jan. 2010 )

2. BBC News ( 2006 ) ( On Line ) why are supermarket doing concern? [ Available at ] hypertext transfer protocol: // ( Access day of the month: 29th Jan. 2010 )

3. Eco-understanding ( On Line ) Market Structure [ Available at ] hypertext transfer protocol: // ( Access day of the month: 29th Jan. 2010 )

4. Facweb.furman ( On Line ) Figure D4-4. Asymmetrical Price Leadership for Price Increases and Decreases [ Available at ]

5. Hannaford ( 2007 ) ( On Line ) British groceryoligopoly [ Available at ]

6. Supermarketbrandguide ( On Line ) The advantages for Asda shoppers [ Available at ] hypertext transfer protocol: // ( Access day of the month: 29th Jan. 2010 )

7. Supermarketbrandguide ( On Line ) The advantages for Sainsbury ‘s shoppers [ Available at ] hypertext transfer protocol: // ( Access day of the month: 29th Jan. 2010 )

8. Supermarketbrandguide ( On Line ) the advantages for Morrisons shoppers [ Available at ] hypertext transfer protocol: // ( Access day of the month: 29th Jan. 2010 )

9. Turtor2u ( On Line ) THE IMPORTANCE OF PRICE AND NON-PRICE COMPETITION [ Available at ] hypertext transfer protocol: // ( Access day of the month: 29th Jan. 2010 )


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