Outline the argument that supermarket power is a ‘zero-sum game’ It is argued that supermarket power dominates the grocery industry and limits consumer choice. The big four supermarkets, Tesco, Asda, Sainsbury and Morrisons, with over 9,190 stores nationwide, entice the public to spend almost three out of every four pounds spent groceries in their stores. This essay will outline the argument that supermarket power is a zero sum game, a situation were one participant's gains result from another participant's equivalent losses (Wrong cited in Allen, 2009, p.70) This argument will show how consumers, the high street, suppliers and their workforces are the lossers. Supermarkets assert that their market power results in a positive-sum game, a situation where all groups participating benefit to some degree, supermarkets claim they provides choice to consumers, and are not a threat to the high street. They also claim to benefit local communities by encouraging retail revatilisation in previously run down areas thus creating new jobs.
The term “consumer society” refers to not only those who buy goods and resources but also those that use different products and resources within society. It has been argued that consumer society is always a ‘throw-away’ society, wasting resources and throwing them away. With the arrival of large supermarkets in the 1960s, their immense buying and selling power, combined with the rising affluence in recent years, consumers (particularly in the United Kingdom) have never had such a wide variety of products (both food and non-food items) on offer. Even in a somewhat affluent society, consumers are still put into two main categories, The ‘Seduced’ and the ‘Repressed’, as described by Zygmunt Bauman. The ‘seduced’ consumer is one with no restrictions; i.e.
In the next chapter we learn how sellers set the prices in which we pay for an item, why things cost what they do and not what they are worth. The key to prices are sellers that can sell their products as close to the cost of making the item. In a regular market, prices are the key. Businesses cannot afford to charge a higher price, customers are normally looking for a lower price and the lower the better, in today’s economy. Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market.
This causes people to have to pay more for products. Stealing affects the economy because it causes the prices of products to rise. Stolen items are lost revenue. Businesses then have to raise the prices to recoup or make up for the loss of products that aren't available for sale, but have been purchased by the business for resale Who Pays the Price Retailers know when the economy plummets, shoplifting does the exact opposite. And when the holidays approach, they also have to brace themselves for the swell in retail theft.
Grocery stores are in competition with smaller markets like Kudlers and Whole Foods. If the brand name grocery stores like Ralphs and Vons did not offer organic and specialty items, the market structure of Kudler Fine Foods would differ. This market structure positively affected Kudler because there was no barrier to entrance within the quality foods market. What negatively affects the company with this market structure is that they are compared to big companies who are able to supply some of these rare items at a more competitive price. One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base.
While many will only be looking for other dollar stores following exactly the same format, that is incorrect. In today's marketplace all types of retailers are adding dollar departments and dollar aisles to their stores. Every one of these companies represents a threat to your business. It's important that you know them and what they are doing. Determine how best to use your company's strengths to overcome the strengths and overall performance of the competition you've found.
This is harmful for our economy. Our economy is based on competition. Any monopoly is not good. Their low prices affect neighboring stores that cannot maintain the “Wal-Mart” prices. This is also an example of how Wal-Mart is getting rid of jobs.
Describe the external and situational influences that steer shoppers like Ashley away from Sears. External influences would include both social and cultural aspects of consumer behavior. For example, in today’s environment consumers have choices when it comes to shopping, such as online venues, which makes competition a huge external factor. Not to mention the fact that consumers are no longer visiting malls as frequently and unfortunately for Sears, they are mostly mall-based. The increase of discount retail popularity has led to a redefining of value.
This would come to no one's benefit and would damage an already unstable country. Americans are one of the most notorious people when it comes to consumerism so what would cause them to participate in Buy Nothing Day? Buying what is wanted, yet not necessarily needed, has become the staple for life in this country. Researchers today claim that the average American child consumes and wastes substantially more than children in nearly every other country. Shopping markets and factories enable these people to acquire whatever it is they want as long as money is traded.
Q: What are the advantages and disadvantages of growth strategies pursued by Royal Ahold, Carrefour, and Wal-Mart? A: Ahold’s main strategy as said in case 9 as, “multilocal, multiformat, and multiformat,” employing new products, services, and store formats to make shopping for healthy and comparably priced food more convenient. They want to be perceived as a local company in all different cultures and demographics. They do not want to be seen as retail monster like Wal-Mart, as you can tell by the title of this case, “Royal Ahold: The biggest supermarket retailer you have never heard of.” Ahold advantages: * Keeping local names, helps prevent cultural shock. When acting in a global manor you reach over many different cultures.