Australian Grocery Market

The australian mart labor essay The Australian mart application is dominated by both major(ip) retailers, Coles and Woolworths who induce an important role in determining supply and command in the foodstuff place. Their influence on the commercialiseplace creates resistance for overbold competitors to repose into the industry due to their orotund bargaining power. This constitution 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 grocery store and what consequences can be foreseen. According to Hubbard et. Al., (2010) perfect competitions takes place in markets where no businesses in an industry confirm market mastery 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 Australian Com petitions and Consumer Council (ACCC) the Australian grocery industry is dominated by two key players, Coles and Woolworths, who to moderniseher have around 80% market share.

While in that respect are other competitors in the market such as separatist wholesalers and retailers including a variety of rarity 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 littler retailers either mingle through acquisitions to compete or turn up their doors as they cant compete. In the short term there are benefits t o consumers with lower prices and burst val! ue for money. However if this dominance were to hold on 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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