Introduction :: Economics

IntroductionThe aim of this coursework is to use economic theory and explain howsuper grocery stores in my area compete for custom. To tin a faircompetition, the four dominant super food markets, Sainsbury, Asda, Tescoand Morrisons are chosen. I shall investigate how the big fourcompete for profit against each other in Leicestershire.Research PlanTo prevent complications the class is divided into 4 groups accordingto their local supermarkets and accessibility. Each student isprovided a price check list with a complete list of common items andcompares each different supermarkets product listing.This is the basic plan but comprehensive analysis and seektechniques shall be started afterwards on as we familiarize with economicskill and business brain of these clever large firms.Competition TheoryThe medium in which a financial exchange on a basis of business valuestakes place is known as The tradeing System or The food 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 than defined as a place of competition, wheresurvival of the fittest is the only necessary skill. A market screwing bean opportunity for success or a road to downfall.There are two kinds major kinds of businesses in a market that are fruit Orientated Businesses and Market Orientated Business.A Market Orientated Business is where the focused product is producedfirst and then a market place is searched for it.Whereas,A Product Orientated Business is where the market surroundings and itsdemands are recognized first and then the product manufacturedaccordingly. This process of discovering the needs and investigatingopportunities in a market is called Market Research. A marketorientated business is more likely to have a Marketing Budget as ithas performed market research and knows the pros and cons of themar ketable product and therefore can predict a financial plan for aspecified period of time and value , say a 5 years plan of 1millionpounds.The market is risky and tricky place for both buyers and sellers. Thesellers want to drain the maximum money out of the public pocket. The sellers goal is to sell a.Product for the maximum price and the buyers is to buy a product forthe minimum cost. In order to make their goals notcoincide, the sellers try to provide atonement for the productsthey sell. Its 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