Australian Grocery Market

The australian mart labor essay The Australian mart application is dominated by devil major retail merchants, Coles and Woolworths who bear an important role in determining supply and guide in the securities industry. Their influence on the groceryplace creates resistance for untested competitors to repose into the industry due to their orotund bargaining power. This newsprint highlights the implications that these large retailers eat up on consumers, primary producers and competitors and how an outline of microeconomic nominate identify how these retailers are check offling the securities industry and what consequences can be foreseen. According to Hubbard et. Al., (2010) perfect competitions takes place in marketplaces where no businesses in an industry confirm market potency as on that point are many sellers and buyers and in that respect are no barriers to premise that particular market as a free race of information exists. According to the Austral ian Competitions and Consumer Council (ACCC) the Australian grocery industry is dominated by two key players, Coles and Woolworths, who to come inher have around 80% market share.

While at that place are other competitors in the market such as separatist wholesalers and retailers including a variety of peculiarity retailers such as main(a) grocery associations (IGA) and Aldi; Coles and Woolworths have a major influence to control prices which in the long-run would see these small retailers either mingle through acquisitions to compete or determination their doors as they cant compete. In the short term there a re benefits to consumers with lower prices a! nd burst value for money. However if this dominance were to conduct the Australian grocery industry may see the effects of a duopoly which could have some serious implications to consumers as there would be no other choices available in the market and the opportunity cost would be minimised. Coles and Woolworths have more retailer shop fronts than their competitors (Bonn, 2004) theyre in more towns than their competitors and demonstrate better...If you want to get a extensive essay, order it on our website: OrderCustomPaper.com

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