![]() ![]() Power of buyers The main intention of buyers is to seek for the lowest price available. Overall it can be said that there is a comparatively big rivalry amongst the existing competitors. Tesco tries to overcome his competitors by launching home brand products in a wide price range to meet their customers’ needs. This is due to the fact that all supermarkets have similar products. Intensity of rivalry among competitors Generally it can be said that there is a small market growth and the three big players fight for gaining new market shares, while ASDA (+ 0,4%) and Sainsbury’s (+ 0,6%) increased their market share Tesco (- 0,6%) lost some to his competitors. ![]() Nevertheless the total market share of ALDI is 3,5% which clearly shows that it is relatively hard to enter the grocery environment and it is only possible to do so up top or down bottom. Nowadays ALDI achieved a growth of about 10% compared to the following year. Based on the fact that they are one of the key players in Germany, they were able to invest high capital in the UK. Although the grocery environment is highly competitive it was possible for the discounter ALDI and LIDL to enter the market as new entrants. Threat of new entrants The UK grocery market is dominated by the three big players Tesco, Sainsbury’s and ASDA, of which Tesco has the most market share (29,9%). ![]()
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