In this essay I will be outlining the nature of supermarket power and how it affects competing retailers and the impact this has on us as consumers. I will do this by drawing heavily on the learning materials provided to underpin the factors involved. WHAT IS SUPERMARKET POWER?
It is useful to describe what is meant by the term supermarket power. In the last twenty years, supermarkets have played a pivotal role in redefining our shopping habits. This is due to many factors like convenience, freedom of choice and value for money but it is also down to the economic domination of supermarkets themselves. The big 4 (Asdas, Morrisons, Tesco and Sainsburys) control roughly 75% of the grocery market in the United Kingdom. (Allen,2009) This is done by using their size and influence on suppliers, who must produce their goods as cost effectively as possible to secure future orders. It is evident that the market share described here has increased greatly, (Allen,2009, p66) states “As the big 4 supermarkets have more than doubled the number of stores under their ownership in the UK since 2000, it seems fair to contend that their economic leverage has grown too”. The supermarkets ability to bring in other lines to satisfy consumer demand has aided this factor.
Now when embarking on our weekly shop we can peruse all manner of goods such as, books, clothes and electrical products. Previously this was the domain of more specialised retailers. It can be argued that this is a positive development and is very much in step with giving the customers what they want, on the other hand it is also a fine example of the big 4 dominating the market by their sheer size and buying power. THE EFFECTS ON THE UK MARKETPLACE
The Essay on Outline the Nature of Supermarket Power on the High Street and Beyond
... consumerism and build up from there to the market power and buying power of supermarkets. Defining Consumption Consumption is defined as the “utilization ... 2012, p. 13) Social consumption is affected by two main factors: need and want. Need is something of necessity, for ... advertising and drawing its public in. With the influence of big conglomerates, the marketplace can be dangerous for the smaller ...
The anti supermarket lobby makes the suggestive claim that every supermarket that opens results in a net loss of 200-300 jobs, as a whole network of local shops and their suppliers is destroyed. As smaller retailers find themselves squeezed out of the market, it becomes increasingly more difficult for the traditional model of the corner/grocer shop to find a stable foothold in an economy that is now defined by bulk buying, power that independent, small retailers are unable to compete with. This demonstrates the imbalance that this creates at the expense of the local small scale trader. The effect on UK farmers has been evident, farmers state they have been forced to take the supermarket price for their produce. This factor has been a catalyst in many smaller farms simply being unable to turn over a profit and, as a result of this subsequently going out of business. UK farmers have been very vocal in pointing out the difficulties faced due to the big 4 and their stranglehold in the market. the Observer reported that producers are complaining of being crushed by the big supermarket chains which, under pressure themselves, are running an unprecedented number of promotions.( Insely, 2012, p41)
These promotions may give the consumer a good deal, but it is clearly at the expense of the producers, who have to absorb the costs themselves. It stands to reason that their profit margin will decline due to this. This eludes to the buying power of these large retailers and raises the issue of supermarket domination having a negative effect on much of the UK growing market. This is strong evidence of the zero-sum scenario . GLOBAL MARKET IMPLICATIONS
The Essay on Sta Green Market Consumer Commercial
SummaryOverviewThe company Hydro Can is planning to launch a new type of lawn car product called "Sta Green." They have hired a consulting group called "Stone Age Marketing Consultants" to create a marketing plan to launch there new product. They can't decide between launching the product to the consumer market or the commercial market. So research is conducted on both markets to determine where ...
There are direct parallels here with the UK marketplace, but naturally this is on a much grander scale. (Allen,2009) states that due to the efforts of the big supermarkets increasing their market share by importing produce more cheaply and passing on the reduction to the shoppers at the checkout. this can mean that the effect of this consumer saving are enjoyed at the expense of others, with the manufacturers and suppliers taking the hit. This once again brings up the notion of the buying power of the supermarkets creating disparity and using their influence to establish their dominance on the market. THE PRO SUPERMARKET ARGUMENT
Consumers want value for money, and who can blame them? This is surely a pre requisite in our economic climate.’ The pro-supermarket lobby states that supermarkets use, not abuse, their economic size for the benefit of communities and consumers, suppliers and workers, alike’.(Allen, 2009, p69) While this claim is valid, it is important to remember that there may be a degree of corporate spin involved here. It is obvious that large supermarket new builds provide vital social and economic regeneration in areas that have experienced unemployment . It is also fair to say due to these large retailers market power, the consumer is in a stronger position,
with access to a wider range of products at lower prices. (Allen,2009).This arguably eludes to a positive- sum game scenario as a result of these factors. CONCLUSION
It is difficult to see how a balance can be achieved and a sense of parity for the local shops and high street stores maintained, within the last few years we have seen many established retailers go into administration. These were sizable operators such as, Barratts , Game, JJB Sports and Comet. All victims of the so called economic downturn that we find ourselves in the midst of. It could be a knock on effect that, along with the trend in online buying, the big 4 played a part in their demise. The extended product range that much of the larger supermarkets carry has taken away the middle ground that these more specialist retailers once occupied. Is it purely down to low prices and convenience for consumers, or has the nature of retail diversified? It is apparent that there are a great many factors to consider when looking at the nature of supermarket power on the high street and beyond, from a sociological perspective it is important to see that there are a great deal of pros and cons that shape both the pro supermarket and anti supermarket lobbies.
The Essay on Niebuhr And Miranda Sin Power Economic
In this paper we will examine the philosophies of Reinhold Niebuhr and Jose Porfirio Miranda of sin and the political and economic implications on justice. We will examine similarities and differences and attempt to reach a moderated view based on their representations. Sin Webster s definition of sin could be paraphrased as the deliberate disobedience to the known will of God, and / or the ...
There is strong evidence that the big 4 certainly seem to have both the market and buying power to squeeze their smaller competitors tightly, however there is undeniable proof that the supermarkets bring much needed economic regeneration. Perhaps it is down to the consumers themselves to exercise their power when choosing where to shop, and take into account what is individually important to them. ultimately there is a price to pay for the cheaper goods and offers at your local supermarket, it may not hit your pocket hard, but there are wide ranging implications regardless for both the UK and global marketplaces.
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Reference List
Allen, J. (2009) ‘One stop shopping: the power of supermarkets’ in, Taylor, S., Hinchcliffe, S., Clarke, J. and Bromley, S. (eds) Making Social Lives, Milton Keynes, The Open University. Insley, J. (2012) ‘British farmers wilting as supermarkets pile on the promotions’ The Observer, 12 August , p41
