Introduction :: Economics

Introduction The aim of this coursework is to use economic theory and explain how supermarkets in my area compete for custom. To provide a fair competition, the four dominant super markets, Sainsbury, Asda, Tesco and Morrisons are chosen. I shall investigate how the ‘big four’ compete for profit against each other in Leicestershire. Research Plan: To prevent complications the class is divided into 4 groups according to their local supermarkets and accessibility. Each student is provided a price check list with a complete list of common items and compares each different supermarket’s product listing. This is the basic plan but comprehensive analysis and research techniques shall be started later on as we familiarize with economic skill and business brain of these clever large firms. Competition Theory: The medium in which a monetary exchange on a basis of business values takes place is known as The Marketing System or The Marketing Industry. Now The Market is such a place where buyers and sellers meet (outdoor/indoor) to exchange goods and services for a monetary value. The Buyer is actually the customer, consumer or the general public. In the U.K. Market is more defined as a place of competition, where survival of the fittest is the only necessary skill. A market can be an opportunity for success or a road to downfall. There are two kinds’ major kinds of businesses in a market that are Product Orientated Businesses and Market Orientated Business. A Market Orientated Business is where the focused product is produced first and then a market place is searched for it. Whereas, A Product Orientated Business is where the market environment and its demands are recognized first and then the product manufactured accordingly. This process of discovering the needs and investigating opportunities in a market is called Market Research. A market orientated business is more likely to have a Marketing Budget as it has performed market research and knows the pros and cons of the marketable product and therefore can predict a financial plan for a specified period of time and value , say a ‘5 years plan of 1million pounds’. The market is risky and tricky place for both buyers and sellers. The sellers want to drain the maximum money out of the public pocket. The seller’s goal is to sell a. Product for the maximum price and the buyer’s is to buy a product for the minimum cost. In order to make their goals not coincide, the sellers try to provide satisfaction for the products they sell. It’s all about the customer needs. For example; if a manufacturer (Asda) decides to enter the toy market, the firm will do a market research and try to predict the choice of