ipl-logo

Sainsbury's Competition Policy Essay

556 Words3 Pages

Competition policy defines government policies to avoid and decrease the abuse of monopoly power. The reason of reducing the abuse of monopoly power is because it can lead to market failure and be against the public interest. (Tejvan, n.d.) The primary objectives of competition policy are to improve markets work and contribute towards improved efficiency in and enhanced competitiveness of UK businesses within the European Union. Example of competition policy is Competition Act 1998 and Enterprise Act 2002. Competition Act 1998 is an act to make provision about competition and has the abuse of a controlling position in the market. The benefit of Competition Act 1998 is low prices for consumers as it is the easiest way for businesses to gain a high market share when businesses offer a better price. For example, …show more content…

Besides, Sainsbury’s can provide a better service and friendlier customer service to customers so that it can satisfy customer needs and wants. Furthermore, businesses should have to offer more choices for customers to survive in a competitive market. For instance, Sainsbury’s has provide varieties of products such as groceries, clothing, shoes, mobile phones and so on to let customers to get most of the products they need in their store. Sainsbury’s can also import unique brands from different country which resulted in a greater choice for customers to choose the products that is most suitable for them. The restriction of Competition Act 1998 is it will cause abuse of market power and lead to market failure. For example, abuse of market powers will occurs when business that has a large share of the market consists of monopoly power to set higher prices of the products and services, it will cause customers do not have the ability to purchase, therefore market failure

Show More
Related

Summary Of The Supermarket: Prime Real Estate By Marion Nestle

538 Words | 3 Pages

Nestle repeatedly discusses how the prime goal of a supermarket is to make a profit, and it does that by product placement and having a specific store layout. According to Nestle, “The stores create demand by putting some products where you cannot miss them.” Nestle then goes on to say that because of the manipulation of supermarkets, a shopper is likely to buy more, and if a shopper buys more he or she will likely gain weight. She complains that supermarkets are charging more for smaller size and less for bigger sizes, causing one to buy the larger quantity. She shows the reader that the supermarkets are costing consumers more money and can have a negative impact on their

Read More

What Does Eisenhower Trying To Say About The Problems Regarding The Military Industrial Complex

547 Words | 3 Pages

When power is put into the wrong hands, or too much is given to a

Read More

Capsim Current Changes

631 Words | 3 Pages

Identify the competition; explain the Goals for each company Competition for the companies will be to improve competitiveness on the market, and increase financial resources for the company. The goals and objectives of each company is to designed an effective operation, and marketing strategies to enhance and foster current marketing strategy, enhance and improve production line to meet market demand, improve sales, and improve financial resources for the next business year for the company respectively (Capsim, 2015). A Recent Example of a Monopoly Industry that was dissolved Standard oil trust is among the recent company that experienced break-up to enhance competition in the oil industry in the United States.

Read More

Political Factors Affecting Sainsbury

753 Words | 4 Pages

It has to maintain many different types of legal laws such as consumer, competition laws, safety, employment, health and safety laws etc. UK Legislation has introduced new tax on advertising highly processed and fatty foods and Sainsbury adapted this new tax by modifying its products as well as by compiling it with legislative requirements. Sainsbury has to follow more and more packaging and labeling policies to deal with stringent laws of food and drinks which will be additional financial burden on the company. It is well bounded by many legal issues such as discrimination and fair treatment legislations, alcohol selling age legislations, national minimum wage policy, etc and has to pursue these legislations for its well being and failure to do this will result in many

Read More

Good To Great By Jim Collins: Business Analysis

532 Words | 3 Pages

According to Jim Collins, author of Good to Great explains that competitiveness lies in a company's unique skills and resources which provide goods, services and products to implement strategies that competitors cannot implement as effectively. This also allows any company as a whole to understand its competitiveness within the industry it operates and this forms a critical part of any business and its operations. A market can be competitive (as measured in the normal way) but competition may nevertheless not be effective in the market place. Even though there may be many competitors in a market, competition is only effective in practice if the consumer is;  Able to make a rational choice between competitors, and  Able to exercise choice

Read More

The Pros And Cons Of Government Regulation Of Oligopoly

127 Words | 1 Pages

Market competition is productive for consumers for price regulation and market equilibrium. Consumers, when shopping from giant companies, are subjected to unregulated price from an oligopolistic market. An example of oligopoly is ATT. ATT just bought DIRECTV recently and is considered the only choice for some areas. The Sherman act, the Clayton act, and the Federal Trade Commission Act of 1914 were aimed to restrict the formation of monopolies that would prevent small companies to enter the business and avoid oligopolies to form.

Read More

The Pros And Cons Of Natural Monopolies

1965 Words | 8 Pages

A monopoly is a market structure, where there is only one supplier or entity of a good or service in the market. In reality, a firm is categorised in UK as a monopoly when it has at least 25% market share (Economics Help, 2012). Monopolies can emerged from “exclusive ownership of a scarce resource, granted monopoly status by the government, exclusive patents or copyright to sell a product or protect their intellectual property” (Economics online, anon) or mergers and acquisitions to sell a good or service. One of the key characteristics for a monopoly is that the monopoly firm is a price maker because there is lack of competition. This position allows the firm to obtain abnormal profit in the long run when it operates at the profit maximising point, where marginal cost equals marginal revenue.

Read More

Should The UK Government Have Monopolies?

542 Words | 3 Pages

In business, competition can be defined as "the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms. ”(Wikipedia, 2014) Competition is an essential element among enterprises as it helps them to allocate resources efficiently and a prerequisite for free market economy as mentioned by Adam Smith. Competition policies and regulatory mechanisms are used to ensure that consumers have wider range of products and services, to prevent uncompetitive practices (i.e., firms do not collude), to insure that firms follow the quality standards and safety regulations and finally, to promote legitimate and liberal competition.(Tutor2u.net, 2014) UK government competition policy has been distressed on adjusting market behaviour and especially on abuses of market power from firms acting individually in a specific market (i.e., a monopoly).

Read More

Competition In Australia Essay

973 Words | 4 Pages

that it reduced productivity, lowered the return on new investment, drove companies offshore and artificially elevated local prices99. A more flexible economy in which competition is truly open will increase productivity and create new business opportunities and ultimately growth as evidenced in multiple cases cited above. In Australia for example, the National Productivity Commission (2005), observed productivity and price changes in the selected infrastructure services due to governmental interventions to promote competition boosted Australia’s GDP by 2.5 per cent100. On the contrary, Hasken and Sadun (2012) examined the effects of an increase in regulation, highlighting that increased regulation that hindered effective fair competition of retailing in the UK from 1996 reduced productivity growth by about 0.4% p.a101. Similarly, Cincera and Galgau (2005) postulated that tighter regulation that reduced entry in European markets raised mark-ups and lowered labour productivity growth102.

Read More

Sainsbury's Strategic Analysis Essay

975 Words | 4 Pages

Sainsbury's was set up in 1869 and since then, it has changed into the second most vital store chain in the UK, it works in more than 1200 general stores and solace stores where it uses more than 161,000 partners to facilitate the deliverance of the goods and services of the supermarket. , It is rated number 80 in the list that entails businesses whose total value add up to more than 5500 million euros in the world. By analyzing the strategic analysis of the company, we will be able to survey the strengths, opportunities, weakness and threats in the relationship with its structure and operations in the UK and general markets concerning its retail business. It also looks at a critical analysis and evaluation of the main future directions for strategic growth of the firm. The assets and ventures of the organization together ought to be utilized to eradicate the failures and the threats so as to build up a demanding philosophy against the dangers seen as threatening the progress of the company.

Read More

Porter's Five Forces Of Tesco

1680 Words | 7 Pages

Tesco is amongst the largest food retailers in the United Kingdom (U.K) with over 3,400 stores and staff amounting up to 310,000. Tesco operates predominately in Europe and America with their headquarters located in the U.K. Tesco has the greatest market share in the U.K dominating approximately 28% of the overall market at the end of 2017. However, there is a constant battle in the highly competitive U.K supermarket industry with the four major players being Tesco, Sainsbury, ASDA and Morrisons. In recent years, Tesco has had to change their business model as well as their services to stay a market leader and differ-entiate from the competition. To find the main sources of competitive advantage that Tesco has over its competitors an analysis of the structure of the industry should be under-taken (Porter, 1980).

Read More

Free Market Summary: Four Causes Of Market Failure?

1602 Words | 7 Pages

Market failures arise when free markets fail to develop, or when they fail to allocate resources efficiently. There are several different types of market failure. Markets can fail in two basic ways, a complete failure and partial failure. A complete market failure exists when free markets are unable to allocate scarce resources to the satisfaction of a need or want.

Read More

Industry Competition: Michael Porter's Five Forces Model

2124 Words | 9 Pages

It notes that stiff competition can reduce the potential profit of like companies. Firms must determine the strategy that will be utilized to gain and maintain the upper hand in the industry, as it relates to price, marketing, competition and the introduction of new and innovative products into the market. The more a company senses competition the intensity of its strategy may increase as it does not only respond to other firms, but also to the industry as a whole. It is natural for firms to respond to competitive moves made by its rival as it will have an effect albeit positive or negative on the industry. Firms may be forced to supply the demands for cheaper but more reliable products or to create differentiated products to maintain the competitive

Read More

Sainsbury's International Strategy

1086 Words | 5 Pages

Report 1 1. Introduction The first supermarket of Sainsbury’s was established in 1869 by John and Mary Ann Sainsbury. Sainsbury’s is a multinational corporation (MNC) located in the UK. Its chain was Britain’s oldest remaining main food retailer and a leading food retailer in the UK and the US. “It also operated in financial service and real estate” (Sebora, T., Rubach, M. and Cantril R., 2014).

Read More

Internal And External Factors That Influence Safety Culture

1409 Words | 6 Pages

Many organisation argue that they should move away from the ideology of HSE legislation standards because of it’s many regulation(red-tape) affect the way business is done The Rt Hon Michael  Fallon et al., 2013). The reason organisation believes in a more “laissez faire” way of doing things, it that is help drives the market into a more competitive form of business in comparison to the “laissez faire” of trade Kelloway and Cooper,

Read More

More about Sainsbury's Competition Policy Essay

Related Topics

Open Document