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Essay / Research Paper Abstract
This 7 page paper considers the UK retail food industry and how pressures have been changing, including the situation prior to the use of e-commerce and the impact that has resulted from internet shopping. Using many examples and looking at companies such as Tesco, Sainsbury, Asda, Iceland and Safeway, strategies are considered and the attraction of the market as a result of the changes is assessed. The bibliography cites 7 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEsuper2.rtf
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Unformatted sample text from the term paper:
there have been increasing pressures form the internet. The adoption of this may be seen as a combination of push and pull factors. The ability to increase turnover is an
attraction, however, the practice may also be seen as one necessary to remain competitive. To consider the impact that e commerce has had in the UK food retailing Porters Five
Forces can be used to consider the structure and performance of the industry prior to the occurrence of internet shopping and how it has changed the industry and also the
level of attractiveness. Existing competition The position prior to the induction of e-commerce in the food sector the environment was growing and very competitive. In 1990 the two of
the top three supermarkets where the same top three as today, however the market share was very different. Sainsburys had the dominant position, with an 11% market share in 1990
and increasing to 11.9% in 1992 (Hemple, 2002). Tesco had a market share of 9.7 and Asda had 6.% putting it behind both the C-op with an 8% market share
and Safeway with 7.1%. The situation was very competitive, with little legislation impacting on the way the companies competed apart from he regulations on opening hours and licensing hours
that have since been reduced. The companies competed in similar manners, developing own brands, advertising and seeking to increase market share. When considering that market size has increased from ?59.9
billon in 1990 to ?99.8 billion in 2000 (Hemple, 2002). The competition also changed, with a greater emphasis being placed on the own brand and increased levels of differentiation being
sought. The position has changed form one of many competitors to a situation that can be seen as an oligopoly. Tesco has become a dominant company with 16.2% market
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