Disadvantages. This reveals a clear situation of the British supermarket industry which is dominated by the four leading companies. The oligopolistic supermarkets are turning the consumer surplus into their own profits, while consumers have no choice but to bear the higher price level. BBC NEWS (2007) reports that ‘Tesco, Asda, Sainsbury’s and Morrisons control almost 75% of the UK market’. BBC NEWS (2008) [Online] UK supermarkets set for shake-up. Available at: http://news.bbc.co.uk/2/hi/6289479.stm (Assess date: 02/02/2010). EssayHub���s Community of Professional Tutors & Editors, Professional Custom Essay Writing Services. Daily Mail (2009) [Online] Supermarket price war as banana prices hit 14-year low. (7) There are no bad debts as the business is carried On Cash basis. Figure 2 reveals a continuous increase in online consumption as well. No plagiarism, guaranteed! Found inside – Page 308Figure 6.4 shows the organization chart for a supermarket chain, ... Table 6.2 summarizes the advantages (and disadvantages) of a functional pattern. The kinked demand curve suggests that to avoid losing a large portion of customers, the firm should follow a price reduction. Telegraph (2010) [Online] Food prices rise as supermarkets accused of profiteering. BBC NEWS (2007) [Online] Supermarkets ���fixed dairy prices���. Customers get a wide assortment of goods. Consumers now have the option of a more flexible shopping time schedule. Daily Mail (2009) [Online] Supermarket price war as banana prices hit 14-year low. Found inside – Page 3Percent of Routes On Which Inside Handler Has a Transportation - Cost Advantage in Serving Large Supermarket Accounts , Amount of Advantage or Disadvantage ... Found inside – Page 133Example: Jane thinks of the pros and cons Suggestion Advantages Disadvantages Contact the manager of the supermarket and pay them a lot of money to arrange ... Advertisement. Not Suitable for the Sales of Goods of Technical Nature. Empty shelves and long lines are things of the past. Content Filtrations 6. There is lack of personal attention. Another data produced by Telegraph (2010) shows that the consumer price of a loaf of bread raised 0.1 pound whilst the wholesale price of wheat dropped 86.5 pounds per tone. VAT Registration No: 842417633. Daily Mail (2009) reports that Asda reduces the price of bananas, Tesco and Sainsbury���s follow to maintain as many customers as possible. BBC NEWS (2007) [Online] Grocery probe eyes local markets. There are many advantages and disadvantages of tourism.1 advantage is that The tourism industry can create many different jobs. Based on this theory, the UK supermarket industry can be a prime instance. (4) As the food and grocery items are usually dealt in a super market, they deteriorate very soon on account of their perishable nature. You can choose whatever you want starting brand and ending color of good. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. TOS 7. Nowadays, customers are seeking the convenience of one-stop shopping in a shopping mall.Hypermarket is a superstore with a combination of a supermarket and a department store which has at least 150,000 square feet of floor space that carry a wide range of products under one roof that allows customers to satisfy all their … The research question of this project is: Opportunities and drawbacks of extended opening hours versus online shopping in the German food trade on the basis of a consumer behaviour analysis Both secondary and primary data have been ... -Almost no promotion. - Expensive products. These items cannot be stored for a longer time. Info: 1372 words (5 pages) Essay As a result, the average price of bananas in the UK started to decrease. Large profit is another advantage of supermarkets.They can have prospect … Available at: http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/6645454/Food-prices-rise-as-supermarkets-accused-of-profiteering.html (Assess date: 15/02/2010). Harlow: Pearson Education. This website and its content is copyright of © EconomicsEssays.com 2019. Consider the pros and cons of these platforms before you make your choice. As mentioned above, Daily Mail (2009) reports that ‘the banana prices hit 14-year low.’ This is because Asda decided to lower its price, and it directly affected the other three supermarkets as they are interdependent. Disclaimer 9. Advantages And Disadvantages Of Supermarkets. (9) It is situated at the central place of the city which attracts many customers. Daily Mail (2009) reports that Asda reduces the price of bananas, Tesco and Sainsbury’s follow to maintain as many customers as possible. Another data produced by Telegraph (2010) shows that the consumer price of a loaf of bread raised 0.1 pound whilst the wholesale price of wheat dropped 86.5 pounds per tone. (3) Articles which require the service of salesmen and experts for the demonstration to be given to the purchasers cannot be covered by this market. Lake of the Facility of Credit. There are some advantages of shopping at large supermarkets. The oligopolistic supermarkets are turning the consumer surplus into their own profits, while consumers have no choice but to bear the higher price level. It is evident that the dominating supermarkets in the UK have large economy of scale and are price makers. Customers enjoy full freedom of selection in supermarkets. For example, research studying the morphology and mechanism of action of SARS-CoV-2 is descriptive. This is because every firm in an oligopolistic market has certain degrees of market power and mutual interdependency (Anderton, 2008). Found inside – Page 107Each of these arrangements is subject to advantages and disadvantages . Perhaps as many as 80 to 85 per cent of the items carried by , or purchased by ... Everything you buy or see will come with some added advantages and disadvantages as well. Below is a large selection of free economics essays for you to use. Secondly, to explore the advantages and drawbacks of it to consumers, and to provide a brief discussion of their causes. Answer the “what”, not the “why”. Study for free with our range of university lectures! Another research of the food prices done by Telegraph (2010) also declares that ���But while consumer prices remain high, wholesale prices have since declined.��� Both of these reports have proven that the big four supermarkets in the UK colluded with each other to form a cartel in order to hang the prices at an invariable level to gain monopolistic power and profits. -In a small shop queue is usually small. Disadvantages of Hypermarket Technology. Buyers get quality goods at lower prices. Found inside – Page 19... When respondents were asked about advantages and disadvantages of discounting ... IMPLICATIONS Discount Food Store Basically A Supermarket The discount ... Found inside – Page 136... remember all the advantages and disadvantages of the system to its various users. Because (here is so much ICT involved in the running of a supermarket, ... Image Guidelines 5. Found inside – Page 47... complete the following organizer with two advantages and two disadvantages of shopping at a supermarket. (Score: 02) Advantages Disadvantages 1. Secondly, to explore the advantages and drawbacks of it to consumers, and to provide a brief discussion of their causes. As mentioned above, Daily Mail (2009) reports that ���the banana prices hit 14-year low.��� This is because Asda decided to lower its price, and it directly affected the other three supermarkets as they are interdependent. The shares are illustrated below: Source: (BBC NEWS, 2008). However you need to think carefully and weigh all the advantages and disadvantages - backed by good market research - before deciding on whether or not to trade online. Especially, Tesco possesses over 30% in 2008. Disadvantages of supplying to supermarkets Some of the downsides of selling through supermarkets are: The price you get for your product will be much less than if you sell direct to customers. -Often closed on weekends. Advntages and disadvantages of big supermarkets. (2) Cost of operation and selling overheads are lesser. Found inside – Page 37supermarket's role in the decline of their local supply chains (Abrahams, 2009). ... and (4) the advantages and disadvantages of food system formalization. Content Guidelines 2. Tutor2U (2007) [Online] benefits of competitive markets. Found inside – Page 14Supermarket Compare the prices at a local shop with those at a large supermarket . Discuss the reasons for the differences , and the Advantage Disadvantage ... Based on the above discussion, consumers may benefit from both the non-price competition and price wars. There are now many examples of bottled and Jarred packaged goods that are available in supermarkets but are not the traditional types. The shopping scene in Poland has also changed over the past ten years. Database: Meaning, Advantages, And Disadvantages Using a database approach can provide your business with a wide range of advantages, benefits, and profits. (3) It enjoys the economies of large scale operation. Consumers are now able to purchase per unit bananas at lower prices. Found inside – Page 322... 7–9, 12, 15, 16, 44, 107–8, 178–9 advantages and disadvantages of, ... 16, 97, 101 J.Q. Charles Supermarket Ltd–Julian's Supermarket Ltd merger, ... In need of qualified essay help online or professional assistance with your research paper? Having said this, an oligopolistic market is likely to create a periodic price war, at least in the short run. Found inside – Page 69The hazards are difficult to discuss separately because the methods used for their control often have advantages and disadvantages that overlap . Without lowering the prices, the one that offers longer opening hours will favorably attract more customer preferences. Profit margin is lower. Supermarket. Customer will get the product by … Economics (5th Edition). The principle of operating multiple or chain stores is not ‘to lay all the eggs in … list and explain three advantages and disadvantages of tourism in the bahamas. BBC NEWS (2007) claims that these four powerful supermarkets negotiated to determine the price of diary goods which is relatively high. Wednesday September 1, 2021 Write For Us. BBC NEWS (2007) [Online] Grocery probe eyes local markets. (4) The customer is benefited on account to lesser prices and the owner gets higher profits due to large turnover. Do you have a 2:1 degree or higher? In brief, the British supermarket industry possesses the characteristics of oligopoly; it therefore should be described as an oligopolistic market. Advantages and disadvantages of descriptive research. Before publishing your articles on this site, please read the following pages: 1. The advantages and disadvantages of the UK supermarket industry to consumers. This is actually one of the disadvantages of self checkout lanes because the shopper does not have the ability to override the price. More people go to this kind of shop. Firstly, consumers may benefit from the non-price competition. In fact, the similar situation exists in the UK supermarket industry. Start studying advantages and disadvantages of hypermarket. Advantages of online retail. But despite these advantages the supermarket has also got few disadvantages. Tutor2U (2007) [Online] benefits of competitive markets. Free resources to assist you with your university studies! In fact, the similar situation exists in the UK supermarket industry. Found inside – Page 4... in that the committee acts as an impartial body when weighing the relative advantages or disadvantages of a product . One distinct disadvantage of the ... Available at: http://news.bbc.co.uk/2/hi/business/7245944.stm (Assess date: 15/02/2010). Ability to Spread Risk. Possibility of Spoil of Perishable Goods. 806 Words4 Pages. (5) There is considerable saving in shopping time on the part of customer as all requirements are available at one place. Finally, to evaluate the extent of the oligopolistic market that tends to be beneficial to consumers. At Sprinting Retail, we develop advanced digital solutions for retailers who want to stay ahead of the industry. Found inside – Page 196... or another supermarket chain or a convenience store chain like 7-Eleven, ... has its advantages and disadvantages; the top advantage being that once you ... Especially, Tesco possesses over 30% in 2008. The benefits of retailing online include: Easy access to market - in many ways the access to market for entrepreneurs has never been easier. Self Checkout Disadvantages Price discrepancies. The staff usually knows you very well. Available at: http://tutor2u.net/economics/content/topics/competition/competition_importance.htm (Assess date: 04/02/2010). Advantages & Disadvantages in big supermarkets The worlds first famous supermarket was opened in the USA in 1912 and the idea soon spread to Europe and other countries. According to BBC NEWS (2007), the dairy prices in British supermarkets are relatively high and there is an approximately 270 million pounds overpayment from the consumers during a two-year period. At first glance, supermarket loyalty programs look like a worthwhile way for shoppers to save money, but is giving up control over personal information worth the savings? If you need assistance with writing your essay, our professional essay writing service is here to help! Found inside – Page 84GM soya , GM maize and GM tomato puree are seen in supermarkets , but are ... modification of plants Advantages Disadvantages leaflet for supermarket ... Supermarkets are located in busy centres. Anderton, A. BBC NEWS (2007) [Online] Online retailing ‘surging ahead’. Game theory is more than often being used to deal with the pricing strategy given others actions and outcomes. Any information contained within this essay is intended for educational purposes only. 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