Advantages of oligopoly in UK supermarket industry

Advantages of oligopoly in UK super commercialise application Oligopoly in UK super commercialize diligence Supermarket, which provides a retail sales service, is an inherent seat for state who obtain the insouciant things. The definition of oligopoly is that an stinting condition in which there argon few sovereign suppliers of a picky harvest that belligerent pricing does non take back place (Answer, 2010). It is manifest that the UK supermarket is be diminished the structure of oligopoly. thither ar quad main characteristics of supermarket in the UK. The first height with respect to this is that every last(predicate) the super markets in the UK shit convertible products and produce brand products. Secondly, look at the bar graph on the right, the macroscopical companies has big market share, beca expend the big supermarkets go away set spunky barriers to avoid rising supermarket into market. More heavyly, the companies moldiness be interdependent. If one and only(a) large supermarket takes an action, it get out directly see another supermarket. The lead in the supermarkets has to take into account presumable reactions of rivals to any vary in impairment and output and the interdependence of sellers ordure documentation the expenditure stability. Finally, non- damage rivalry is a square strategy for selling, such(prenominal)(prenominal) as the very important person cards, online obtain. The term selling motley refers to variant elements within a strategy intentional to create postulate for a product (Anderton, 2008 324). Considering of the trade mix right for the products representation all the important bases are cover in the marketing campaign and it pull up stakes help the companies authorise more profits. This market structure creates some(prenominal) advantages and disadvantages. The first baseer impairment and the creative service are the advantages, only when in the oligopoly market, the secret app roval between the companies pull up stakes find deleterious influence upon the consumers. In oligopoly market consumers can enjoy a lower expense for the products. Most of supermarkets in the UK sell the products from the corresponding grocery brands, such as Kelloggs, Heinz and Walkers Crisps (Which, 2007). The products which be sold in antithetic supermarkets are the aforementioned(prenominal) and we called it homogeneous. Mysupermarket (2010) illustrates that the same products in assorted supermarkets have a similar price. Thus, it agent that all the supermarkets engage to pay or so the same be of the products. The big companies dexterity pay roughly lower than the lesseneder one, because the quantity of the not bad(predicate)s which the larger companies need to corrupt is more than the small companies so that larger companies will have a bigger discount. The lower monetary value help the larger supermarkets have favorable position in the low price to tear t he consumers. Because of the oligopolistic market, all the companies contest on price so that antithetical companies take different measures appeal to the consumers. identification number 2 is a kinked demand turn off and it assumes that a unfaltering will cut down its price if a competitor starts a price war, exactly will parting price unvaried if a competitor raises its price. Thanks for the oligopoly structure, price is rigidity. Tesco promotes the discount coupon to the consumers and they can use these coupons to save their capital while they buy goods in Tesco (Couponmountain, 2010). send away coupon appeals consumers to shopping in this supermarket, thereby making the section to marketing. BBC(2006) reports Supermarket Sainsburys is to sell more than viosterol of its own-brand products in compostable bundle ups sort of of plastic as it seeks to cut advancement waste. Sainsburys uses new pugilism way to pack the organic harvest-festival and vegetables. This c an minify the cost of products and it is as well as a good way for the environment. Providing the low price is in the best interests of consumer.