Australian Grocery Market

The australian mart labor essay The Australian grocery application is dominated by both study retail merchants, Coles and Woolworths who be possessed of an important role in determining supply and requisite in the grocery store. Their influence on the food martplace creates resistance for invigorated competitors to repose into the industry due to their orotund bargaining power. This piece highlights the implications that these large retailers eat up on consumers, primary producers and competitors and how an analysis of microeconomic nominate identify how these retailers be check offling the market 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 dominance as on that point are many sellers and buyers and on that point are no barriers to premise that particular market as a free race of information exists. According to the Australian Co mpetitions and Consumer Council (ACCC) the Australian grocery industry is dominated by two key players, Coles and Woolworths, who to addher have around 80% market share.

While on that point are other competitors in the market such as separatist wholesalers and retailers including a variety of speciality 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 rigorous their doors as they cant compete. In the short term there are benefits to c onsumers with lower prices and burst value ! for money. However if this dominance were to proceed the Australian grocery industry may see the personal 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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