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The supermarket sector in the UK is a prime example of dynamic competition characterized by unique traits that define pricing tactics and profitability. This discussion examines critical characteristics that impact the industry and how they relate to the pricing strategies and profitability of businesses. Price wars are more likely to occur due to industry features like market concentration and price sensitivity of consumers, which are sparked by fierce competition amongst giants fighting for market share. However, because of differences in their strategic positioning and ability to withstand price fluctuations, not all businesses suffer the same consequences. Firstly, the UK supermarket industry is characterized by intense competition, with a small number of dominant players controlling the majority of the market. This industry is shaped by several factors, including consumer behavior, supermarket positioning, and market concentration. First, the oligopolistic structure of the UK supermarket industry is demonstrated by the market concentration, with a few major chains holding a significant share of the market, including Tesco, Sainsbury's, Asda, and Morrisons (Hassan, 2012, p. 69).

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