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Essay / Research Paper Abstract
This 8 page paper examines the UK retail supermarket sector. The paper begins with a LoNGPEST analysis of the industry, looking at the local, national and global influences of political, economic, social and technological factors. The paper then conducts a Porters Five Forces Analysis before comparing to two largest supermarkets in the UK. Tesco’s and Sainsbury’s and looking at their generic strategies. The bibliography cites 4 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEUKsprmkt.rtf
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Five Forces model. There are many political influences felt within the sector. As there is a high level of concentration, and as such when looking at the political influence this
is making itself felt. The top five control more than 8-% of the market (New Statesman, 2003). LoNGPEST Political The political influences are wide ranging. From local planning issues
to the impact of global trade disputes. On a local basis there are few political issue other than the ability to get land and then build on it, as
the local authority are those that give planning permission. However, the difficulty in building larger facilities, as seen with the difficulties in finding suitable sites and then getting permission has
emphasised the need for an alterative approach (Cull, 1997). This has resulted in the use of more smaller stores, such as Tesco Express, where there are small local stores with
a limited range if growth is still required as seen with Tesco. Morrisons have got around this by building many stores in town centre sites to gain planning consent more
easily. Nationally the political influences are greater. There are the impacts of legislative moves, such as the increase in national Insurance contributions of 1% which is increasing the cost
of employment for all supermarkets. This can be cross referenced with the economics. The Competition Commission has also made their power felt
in 2003. Safeway has been struggling for some time, and as such a bidding war broke out with Tesco, Sainsbury, Wal-Mart and Morrisons, as well as other all bidding to
buy the chain, The bids were referred to the Competition Commission, the only bid that was allowed to progress was that of Morrisons, and then only with the condition of
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