Will the Queensland Dairy Industry Is Collateral Damage in Supermarket Price War - Assignment Example

As supermarkets buy the products on large scale, they will be able to sell the products at a much lower price than their smaller counter parts by passing the savings they incur by purchasing on a large scale.... As a supermarket helps the customer to get a wide range of products under a single roof, the outlet is finding a good customer base and is being profitable for the owners in all places of the world including Australia.... The high profit in a supermarket depends on the turnover as the supermarket concentrates on buying and selling the products in large quantities....

Government intention to develop major performance indicators for the food sector created fear in the supermarket lobby of a new governance structure by selecting a successful RTTT.... The timing of pressurising the supermarket companies to bring transparency in data on environmental and social effects mismatched because of their disinterest in providing the information due to cost cutting measures to remain in competition with leading market giants (RTTT Final Report) Another problem is the heterogeneous nature of the UK supermarket in terms of scale, ownership and customer base....

The Null hypothesis will be the one which assumes that the average price of all the stores is same.... Null Hypothesis: H0: µ1 = µ2 = µ3 = µ4 Alternate Hypothesis: H1: µ1 ≠ µ2 ≠ µ3 ≠ µ4 Where, µ1 is the average price at Coles/BI-LO µ2 is the average price at Woolworths/Safeway µ3 is the average price at independent stores µ4 is the average price at ALDI Appropriate Test Since, we are required to compare the means of 4 samples; the appropriate test that shall be performed is the one-way ANOVA (Karris, 2003)....

In addition, price is also used in competition with Aldi tagged 'no frills' European supermarket charging lower prices based on cheap imports and less marketing costs.... Competitive rivalry in UK supermarkets are driven by advertising battles, sales promotion campaigns, price competition, introducing new products, provision of warranties and guarantees and after-sales services improvements.... The writer of this essay states that the UK supermarket industry is highly competitive since it is its maturity stage of life-cycle....

Unlike their competitors such as Aldi and Lidl, Tesco has ignored the need to be price competitive, thus being unattractive to limited TESCO SUPERMARKET MARKET SHARE By Location Tesco supermarket market share Problem Tesco supermarket was losing its market share as some of its closest competitors continued to gain market share.... Unlike their competitors such as Aldi and Lidl, Tesco has ignored the need to be price competitive, thus being unattractive to limited income consumers....

This price war has raised many questions among marketers and economics, and they are seeing this war as an unfair tactic of retailers which is creating negative impact on the overall supply chain.... This price war has raised many questions among marketers and economics, and they are seeing this war as an unfair tactic of retailers which is creating negative impact on the overall supply chain.... Purchasing from large number of manufacturers gives them power to bargain on price and quantity and due to this power they are generating more profits, whereas food manufacturers are suffering....

Thi work called "price war" describes different situations in which price wars can occur.... The firm thus increases the elasticity of the demand curve, increases its vulnerability to price competition, and initiates a price war.... As a result, even IBM made similar decisions in the PC market, initiating price war.... The author takes into account the dynamic market conditions, problems in price wars, the aspects of capacity utilization....

Supermarkets store a lot of things like household materials, dairy products, and groceries.... The paper "Are Supermarkets a Benefit to the Society, or Do They Pose a Social Cost?... determines supermarkets pose certain social costs such as exploiting weak suppliers, causing small stores to go out of business....