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Task 2

Sub-headings

- Market structure

- Supply and demand

- How (your organisation) responds to the market changes

- The impact of market changes and future trends that could impact the business.

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Is Tesco perfect or imperfect?

Tesco is both perfect imperfect. The particular reason for this is mainly due to the many competitors that they face. Tesco beats most of the other supermarkets prices however, some of their competitors beat Tescos prices. To beat their competitors, Tesco announced their club card prices which beat many of their competitors prices. Overall they remain imperfect because some of their competitors still beat their prices.

Market Structure- Tesco operate in an oligopoly market structure. Multiple other supermarkets such as Aldi, Sainsbury’s and Asda also operate in this market

Supply and Demand- When Tesco sees one of their products that are high in demand, they may up the price in order to make more profit. Excess supply might cause Tesco to lower their prices so that they can clear their stock.

How Tesco responds to the market changes- Tesco adapts to the market changes. This means lowering or upping prices, updating their products and, using promotions to match their competitors actions and customer trends.

The impact of market changes and future trends that could impact the business- Due to consumers preferences towards healthier products, it can influence Tescos product offerings. Online delivery’s are becoming more common which can influence Tescos future strategy’s.

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is Aldi perfect or imperfect?

In a way, Aldi is both, it is perfect as it price matches its products with Lidl however it’s imperfect as it doesn’t price match with any other supermarkets, this makes it hard for new supermarkets to join the market as it’s hard to price match Aldis cheap prices

Market Structure:

Aldis market structure is both perfect and imperfect, perfect in a way that they price match with Lidl yet imperfect as they don’t price match with any other supermarkets making it hard for other supermarkets to compete with such cheap prices. In this market structure there are high barriers of entry, this means that it’s hard for new supermarkets to enter this market as its competitive and they wouldn’t be able to price match Aldis prices

Supply and Demand:

To meet demands, Aldi collects data on customer behaviour, preferences, and trends to make the best decisions, this is so that when Aldi is ordering their supply, they have whatever is in demand to meet the demand of consumers and meet customer needs. By Aldi collecting data on customers preferences, behaviour and trends, they are able to monitor which products are in demand, e.g. if a product is no longer in demand, Aldi will see this and stop ordering so much of the product to reduce inventory so that when something else is in demand, they have the space instead of there being lots of a products that’s out of demand and out dated.

How Aldi responds to the market changes:

During the influx of cost of living crisis, Aldi had accumulated over 1 million new customers, this is because of how cheap Aldis products are compared to other supermarkets causing people to change to Aldi, This changed the market as Aldi had 1 million new customers in just one year which effected other supermarkets as they had lost quite a few customers. Because of inflation, and a million new customer joining Aldi, Aldi is planning to launch in 18 new locations before the end of the year (2023) and has recently committed to opening up to 500 more stores across the UK.

The impact of market changes and future trends that could impact the business:

The impact of the market changes towards Aldi was positive, although the cost-of-living crisis is horrible for most supermarkets, it positively impacted Aldi as they gained 1 million new customers which grew its operating profit to £178.7 million from £60.2 million in the previous year. Although this has mainly been beneficial for Aldi, it could negatively impacted them in the idea that will this sudden amount of new customers, they may not be able to handle the demand causing delays in sales causing customers to be unhappy.

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Morrisons are an imperfect business as they have multiple different competitors in their sector, including businesses such as Tesco, Sainsbury’s, Asda and Lidl.

Market Structure-

UK supermarket oligopoly- reduces competition as they have significant market share and pricing power.

Supply and demand-

-Vertically integrated

-Owns much of its own fresh produce supply chain from farms and fisheries through to manufacturing and packing facilities

How Morrisons responds to the market changes-

-Fix, rebuild, grown, sustain energy

-Be more competitive

-Serve customers better

-Local integration and serving the community

-Simplify and speed up organisation

-Naturally digital

-Pride in hygiene

-Creating and scaling for profitable growth

Impact of market changes and future trends that could impact the business-

-Inflation: profit being cut due to multiple price changes

-Sustainability

-Loyalty schemes

-Customer facing technology

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Sainsbury’s imperfect/perfect

Sainsbury's operates in an imperfect market, like most businesses. In an imperfect market, there is competition and factors that affect supply and demand, such as pricing, product differentiation, and consumer preferences.

Market structure

Sainsbury's utilizes the market structure by understanding the dynamics of supply and demand, pricing their products competitively, and differentiating themselves from other retailers. They also analyse consumer preferences and adapt their strategies accordingly to maintain a strong position in the market.

Supply demand

Supply and demand have a significant impact on Sainsbury's. When there is high demand for certain products, Sainsbury's ensures an adequate supply to meet customer needs. Conversely, if demand decreases, Sainsbury's may adjust their supply accordingly to avoid excess inventory. By closely monitoring supply and demand, Sainsbury's can make informed decisions to optimize their product offerings and maintain customer satisfaction.

How Sainsbury’s responds to market changes

Sainsbury's responds to market changes by staying agile and adaptable. They closely monitor consumer trends, competitor strategies, and external factors that impact the market. Based on their analysis, Sainsbury's may adjust their product offerings, pricing, marketing strategies, and operations to effectively respond to changing market dynamics. This allows them to stay competitive and meet the evolving needs of their customers.

Future market changes

Future market trends have a significant influence on Sainsbury's. By analyzing and anticipating these trends, Sainsbury's can proactively adapt their strategies and offerings to meet the changing demands of consumers. This allows them to stay ahead of the competition and remain relevant in the market. Keeping a finger on the pulse of future market trends helps Sainsbury's identify new opportunities and make informed decisions for their business.

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Tesco is imperfect as they have a lot of competition in their market sector so they have to continually compete for their customers.

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Costa is in an imperfect competition as it has many competitors selling a similar product this means that they won't have much control over the market as other competition would be able to influence their market and there are also many alternitve and substitute businesses that could be used over costs products

-market structure: costas market structure falls within the oligopoly market , this means that costa has few leading competitors and the products are differentiated they also have larger barriers to entry.

-Supply and demand:

The ways in which the supply and demand would affect the pricing and outputs decisions for costa would be for example: Costas competition would influence the demand of their products as competitors such as Starbucks would take up a large amount of the market giving customers another alternative which could decrease costas demand this could cause costa to need to change their prices in order to compete in the market.

-How costa responds to the market changes: if the demand in the coffee shop market were to decrease costa would respond by either lowering their prices to make the products more affordable or offer some special promotions in order to influence people to shop there. However if the supply

-The impact of the market changes and future trends that could impact the business

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McLaren

Market structure-

My business operates in an imperfect market as it has many competitors that offer products for different prices, there are also many different substitutes within the market.

Supply and demand-

Supply has affected McLaren negatively as suppliers could be late and delay the process of cars being built which cost McLaren a lot of time and money. Demand has affected McLaren negatively as they are under pressure from high demands and could potentially mess up while building the car which can set them back.

How McLaren responds to market change-

If the prices in the luxury Automotive decrease, McLaren will respond by doing a little sub-section within their brand for cheaper cars which will keep them competitive. If the demand within the Luxury Automotive market increases McLaren will respond my ordering more parts to be able to build cars fast to meet the demand of the customers.

Impact of market changes and future trends that could impact the business-

An impact of future trends that could impact McLaren is the climate change and environmental situation as McLaren are known for their not so sufficient fuel efficiency with their cars which means McLaren will have to slowly adapt to the changes in the car industry and will have to design new electric cars to keep up with the changing world.

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Boots is an imperfect business as they have many different competitors selling similar products, such as Superdrug and lloyds pharmacy. However they sell them at different prices due to how big of a business they are and weather they need profit.

Market Structure- Boots market structure is an oligopoly, this is when a company dominates the market, for example Boots as they are the top business in the market, their competitors are Superdrug which are also very high up but not as big as Boots, then Lloyds pharmacy.

Supply and demand- the global boots market is anticipated to raise at a considerable rate during 2023 and 2031. The market is growing at a steadily rate however it’s due to rise over the projected horizon.

How Boots responds to the market changes- they respond to the market changes by adding new and popular products, for example how trends change and the customers have different needs and wants, they need to be changing their products so that their customers can purchase them, resulting in Boots getting a high range of profit and more customers.

The impact of market changes and future trends that could impact the business- this can influence consumer behaviour if they don’t have a certain product in store, which could result in Boots not getting much revenue and losing customers due to them not selling a certain item.

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Tesco is an imperfect market since it has multiple competitors due to the amount of similar products it sells as their competitors and the similar prices of the products. It also has high barriers to entry for their market.

Market structure:

Imperfect market- small number of firms that influence the market and hold significant power in the market.

Supply and demand:

Economic factors are the main concern to Tesco. These influence the supply and demand costs, prices and profits.

High unemployment is also a factor that impacts Tescos supply since there may be less workers meaning the efficiency of the products and services sold decrease.

How Tesco responds to the market changes:

The impact of market changes and future trends that could impact the business:

Changes in markets economic status. Customers may not be able to buy the products.

Changes in technology.

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Sainsbury’s is imperfect because of competitive pricing

Market structure-Sainsbury's is a large supermarket chain in the UK. It operates in an oligopoly market structure, along with other major supermarket chains like Tesco, Asda, and Morrisons. In an oligopoly, a few large firms dominate the market and have significant control over prices and competition.

Supply and demand-In terms of supply and demand, Sainsbury's strives to meet the demands of its customers by ensuring a steady supply of products. They analyze consumer preferences and market trends to determine the quantities of products to stock on their shelves.

How-Sainsbury's responds to market changes by closely monitoring consumer preferences and market trends. They adapt their product offerings and marketing strategies to meet the evolving needs and demands of their customers. For example, if there is a growing trend towards healthier eating, Sainsbury's may increase their selection of organic and plant-based products.

Impact-Health and wellness: As people become more health-conscious, there may be a shift in demand towards healthier food options. Sainsbury's could respond by expanding their range of organic, plant-based, and healthier food choices.

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Tesco is imperfect as they have multiple different competitors such as Sainsbury’s, Lidl or Morrisons which sell the same product at the same prices

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Morrisons are an imperfect business because they have many different competitors in their area that are all competing for customers which makes the choice for customers to choose which business to shop at harder as theres more choice

Market structure

Supply and demand

How your org responds to the market change

The impact of market changes and future trends that could impact the business

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Sainsbury is a business that has imperfect competition. This is because Sainsbuty operates in the supermarket sector which has high barriers to entry as well as selling a wide range of products varying quality and prices making the competition imperfect

Market structure:

The market structure of UK supermarket is an oligopoly as the market is dominanted by 4 major supermarkets which sainsbury is one of as it has a larger market share. This means Sainsbury dominates a large part of the market and will have more influence in setting the prices of products in the market compared to smaller supermarket chains.

-Supply and demand:

Different supply and demand factors affect the Sainsbury.

For example the affordability of Sainsbury products will affect the demand as prices will depend on customers will.affprd the products. Additionally due to brexit there is increased difficulty in seeking certain products.

-How Sainsbury responds to market changes:

Sainsbury is very responsive to market changes in order to remain competitive within the market. For example, more and more businesses have been focusing on loyalty programs which reduce the prices of products. Sainsbury has increased to add.more items onto their nectar card for discount details

Additionally. Sainsbury has launched a new home brand of food products which offers food at a lower prices to customers

-The impact of marketing changes and future trends that could impact the market:

The growth and increase in the number of people online shopping will impact the supermarket industry

Increases in trying to be more sustainable. More plant based products as more.people chose to become vegetarian and vegan.

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waitrose are in an imperfect market as it has many competitors that sell the same products or substitutes of the product for a cheaper price meaning there is list of competition between business trying to get the most customers

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Tesco is a business with imperfect competition. They offer similar products to other supermarkets in the UK, however many are branded differently and priced differently.

MARKET STRUCTURE

- Has an 'oligopoly' structure; where a small number of businesses dominate the industry (in this case the supermarket industry)

- This makes Tesco hold significant market power, allowing them to influence prices and other variables in the market

SUPPLY AND DEMAND

- Tesco has high demand, meaning it has to have a very efficient supply chain

- This supply chain allows them to keep their prices cheaper, with the company working closely with their chains to ensure they're getting the most products possible for a fair price

- This also let's Tesco turn a profit from their products that they sell

HOW TESCO RESPONDS TO THE MARKET CHANGES

- The introduction of online shopping has been a large shift in the UK supermarket industry over the past 10 years

- To compensate for this change in the market, Tesco have released a click and collect system on their website online to adapt to this

THE IMPACT OF MARKET CHANGES AND FUTURE TRENDS THAT COULD IMPACT THE BUSINESS

- Tesco has been beginning to invest in cutting plastic use and using renewable energy sources, as this has become a big change to the market and more people have been beginning to be concerned about the environment and want businesses to make changes to keep it safe.

- They are aiming to hit a net zero carbon target by 2035 using plans to cut out large uses of plastic and also using plans to recycle more

- Tesco are also growing their use of technology to expand things like self service checkouts, this increases convenience for the customer as checkouts are faster

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Sainsburrys

My business is imperfect as it has lots of brand bias and has a very high cost of entry as the market is very competitive with big businesses

-market structure

-supply and demand- logistics, raw materials and labour, competition, gov support, ability to produce profitably

-how sainsburrys responds to the market changes- they have responded to market changes with technology by increasing the amount of self checkouts and taking to internet based shopping this has lead to new jobs and new costs

-the impact of market changes and future trends that could impact sainsburrys- if trends such as sustainability increases their products might change their suppliers and might need to become more environmentally friendly unordered to keep profit margins high

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Morrisons is an imperfect business because they have had many obstacles to overcome and have had to face loads of competition just like any other supermarket, although they have had to face a few different things they are still a really popular supermarket chain who a lot of people love.

1. market structure:

for the market structure i will talk about the competition within the supermarket business and how it affects the business i chose.

2. supply and demand:

talk about the availability of a product or service and how this impacts the rise in prices they may have when supply exceeds.

3. how does it respond to the market changes:

supermarkets adjust their products to meeting consumer demands so i’ll speak more about that for morrisons. they try to meet the needs of their customers and carry on with the competition with other supermarkets.

4. the impact of the market changes and future trends that could impact the business:

if there is a change with customers trying to better their eating habits they will have to go to selling more organic foods, gluten free and plant based products to meet what customers want so they can keep their customers and sales up.

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Morrisons is imperfect competition because their business do not operate within the market and they have diffrent competitors such as aldi, tesco, sainsbury and especially argos and offer diffrent level of prices.

-Market structure of morrisons os oligopoly structure , this means its a snall number of large firms or business that control all supermarket in UK.

-Supply and demand of morrisons is they have the ability to produce their own profitqbility because their products come from england coltivation and they produce fresh products.

-How orgonasatinal responds to the market changes, morrison they monitor their market trends and collaborate with suppliers.

-The impact of market changes and future trends that could impact the business. Looking at the sustainability of morrisons.

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Tesco is imperfect because they have their own USP. They have the Tesco club card and they offer many similar product ranges to other supermarkets. There are multiple supermarkets in the UK. They have a smooth supply and demand chain and most supermarkets don’t have control over the price of their goods due to trading issues.

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Sainsbury's is imperfect as a business because there are many similar businesses that compete with Sainsbury’s to produce the same amount of quality and affordable price, such as Morrisons and Asda. Sainsbury’s also doesn’t differentiate their products enough to separate themselves from these two businesses.

Market structure: Sainsbury’s has a small number of suppliers making this an oligopoly approach which is also the approach used by other uk supermarkets.

Supply and demand: if Sainsbury’s notice a big increase in demand for one product, they will keep it in stock and charge it fairly due to oversupply.

How Sainsbury’s responds to market changes: Sainsbury’s responded to market changes by making themselves more accessible for example, they made their online shopping more flexible for their customers.

The impact of market changes and future trends that could impact Sainsbury’s: Sainsbury’s may be forced to adapt their prices if their competitors all decide to lower costs. For example, Sainsbury’s have been known to price match with some of their competitors to keep their customers loyal.

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Is Asda imperfect or perfect? Asda is both imperfect and perfect. They are based in a imperfect market. As they are selling similar products to most of their competitors. The prices are also quite similar to their competition. This makes is hard for them to fully perfect.

Supply and demand- Asda’s supply and demand is about the products which are being sold to the customers, who could potentially be interested in the items being sold. If some products are not in stock it can cause issues between the staff and customers, could lead to unhappy customers.

Asda responds to the market by looking at online reviews and surveys. They use these negative or positive reviews to help become a better business.

Impact of market change and future trends impacts Asda as if they are not following the latest popular trends the amount of customers would decrease. They will not make as much profit.

Market structure- Asda has a structure called (opiology) which is a small market structure which dominates the industry.

How (Asda) responds to the market changes

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Aston Martin are part of the automotive industry and manufacture various styles of luxury cars. Due to the amount of competition within the automotive industry they are part of an imperfect market due to it being hard to enter the market as the majority of automotive manufacturers have a strong brand recognition and have built there trust with their customers and potential buyers as they have a wide range of customers who are able to promote their products and services.

Market Structure

Aston Martin’s market structure is within the ultra-high luxury sports car market. This means that they sell a high range of products at costly prices due to the high quality products and services.

Supply and Demand

Aston Martin have had troubles with their supply chain which has affected the business as they have been unable to provide the necessary car parts for their latest SUV model. Therefore, they ended up loosing £80 million due to the supply chain issues and also due to logistics disruptions they have lost a 4% year on year decrease in wholesale volumes.

How Aston Martin responds to the market changes

Aston Martin have responded to the market changes due to not having a very wide variety of products even though they have different models the looks were very similar and due to this they have changed and adapted their business and provided a larger variety of high quality luxury cars and due to this their market share has increased and their customer base has increased.

The impact of market changes and future trends that could impact the business.

Aston Martin may be influenced by the sudden change in the market to bring in more electric and hybrid vehicles to become more sustainable for the environment. This is a big issue in the world now and many business are adapting to this due to the decrease in customers if they do not adapt to the current crisis. Aston Martin will then have to become more sustainable due to them being a heavily petrol based automotive manufacturer therefore they will need to change a lot about the way the business operates for the future and in order to become more sustainable.

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Sainsbury’s is imperfect because of their competitors that are in the same market sector and they have factors that can affect their supply for their products such as consumer preference on them, pricing competitive and differentiation of the products due to them having high barrier to enter in the market.

Market structure

The market structure for Sainsbury is imperfect since they sell the same products as their competitors however sold at different prices. Therefore, it leads the business with product differentiation in the business and make more profit hopefully.

Supply and demand

Availability of a product or service in the business and how it impacts on their pricing strategy when supplies may exceed.

How does Sainsbury’s respond to the market changes?

Sainsbury’s organises their products to meeting consumer demands. Therefore, they try to meet the needs of their customers and carry on competing with other businesses.

The impact of the market changes and future trends that could impact the businesses.

Things that could impact Sainsbury’s for this is if one specific thing starts to trend a lot for example a chocolate becoming more popular because social media has to put in high demand, Sainsbury’s will have to work around getting more of that one thing to keep their customers happy and sales up.

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Sainsbury’s is perfect and imperfect due to the competition linked with the profit. supernormal profits are apparent when new firms will be seen as more attractive in the industry causing competition and prices to fall

Market Structure - is looking at the four biggest chains in supermarket in the UK, the leading retailers are Tesco, ASDA and Morrisons and Sainsbury’s. They all compete in business and this is likely to be in place for the foreseeable future. They are all competing with each other to be the best and to get the highest number of customers through their doors.

Supply and Demand - Sainsbury’s are popular as they use the competition to assess and check affordability of the prices, they check for increase to minimise them to make customers be loyal to them and to use them every day as the chosen supermarket. Sainsbury’s is more than just great to the product and they look after the service the get from farmers who make food and drink etc.

Sainsbury’s also make sure that all demand needs are met by supplying what the customer wants, and barring products are always in store and meeting customers needs. Having the loyalty scheme with money off vouchers will also be included in this.

Demand is ensuring that Sainsbury’s can meet the demands of the customers that walk in the stores. If there are things that people want, we need to be able to provide that. When customers get want they demand and see that these are supplied at a reasonable cost, customers are more likely to return and keep prices & shopping at Sainsbury’s.

How Sainsbury’s responds to market changes

Sainsbury’s customers are changing to help the business grow, this includes how they will be in the future - improving and putting the supermarket online with more easy access and flexibility - with more choices of food and drink etc. there is the risk depending on the government support and changes it makes, particularly with financial decisions. Sainsbury’s will change to grow and improve technology in the retail world.

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Market Structure

Imperfect, offers a wide variety of products that are almost constantly changing price.

Supply & Demand

Fully automated supply chain services.

Amazon adapts by changing product prices to be cheaper to lure in more customers. Heavy focus on fullfillment options.

How Amazon respond to market changes.

Amazon produces its own high quality products to bring in more profit. Amazon also would shift the prices to draw in more customers, as products are cheaper.

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Sainsbury's is an imperfect business as there are lots of competitors meaning Sainsbury's will fight for prices from competition such as Tesco, Asda and sell a wide range of products.

Market structure:

Supply and demand: sainsbury's have responded to recession by decreasing prices to make products more affordable as people don't have enough money the negative is the business

How sainsbury's responds to market change:

Impact from market changes and future trends that impacts sainsbury's:

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Market structure:

Sainsbury’s is imperfect as they operate in a market where many of their products are the same of their many competitors such as Lidl,Aldi,Morrisons.

Supply and demand:

The economy- Sainsbury's need to look at what people can afford so they know what the demand will be for different products.As this will change their supplies

How have Sainsbury's responded to market change:

They changed with the market though making online shopping available and expanding smaller stores to make it more convenient for customers.

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Tescos is in one way a perfect due to them lowering their prices on products and matching the aldi price match. This will gain them more customers and profit because they are lowering prices and linking their supermarket to a cheaper one. However Tesco's is also imperfect because of them selling so many alternatives for many products.

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Market structure

JD operates in an imperfect market because, yes they sell the same brands as places like footasylam, but they also have branded products that are not available anywhere else which as specified trainer colours. this varies the market to make it imperfect. As well as this they hold the right to vary they're prices even though they are reselling from their product from other sports wear businesses like Nike and Under Armour. This allows them to further vary from similar businesses such as footasylam.

Supply and Demand

JD's demand all depends on the different brands that they are selling because there are a range of different brands that move into 2 different areas. There are brands that have there popularity go up and down, such as, Mercia and hoodrich and there are brands that has their popularity stay on a high such as Nike and Adidas

How JD responds to the market changes

The impact of the market changes and future trends that could impact the business

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Sainsbury’s is imperfect because they have loads of competitors such as Asda, Tesco and another who sell’s similar products with different prices

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Sainsbury’s work in an imperfect market. Because there is competition this means that it will effect the chain of command and as Sainsbury’s is a big it means the costs are higher.

Market structure - the main supermarket chain has 4 that are competitors to one another. However Sainsbury’s is one of the biggest. Sainsbury’s have an own brand which means they are able to compare the prices of the products to other companies such as Aldi.

Supply and demand - logistics, labour and raw materials. The affordability of the products is important to Sainsbury’s as prices are rising due to inflation and the government so the prices still need to be reasonable for customers to be able to still afford it.

How Sainsbury’s responds to the market changes? - Sainsbury’s will adjust to the demand of the customers needs. Most supermarkets are developing their own loyalty programmes that allows customers to earn point to get money off their shopping.

The impact of market changes and future trends that could impact the business. - dietary requirements and restrictions or any new trends in the market. Sainsbury’s might have to adjust to attract more customers. Sainsbury’s could look at becoming more environmentally sustainable so they can change the packaging on the products to its environmentally friendly.

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Sainsbury’s is an imperfect business as most of their shoppers use the nectar price system which allows customers when making a choice on where to shop to think how much they’d save . They also price match a lot of their items to which the consumer must then make a decision on what quality they prefer.

Market structure

Sainsbury's operates in an oligopoly market structure. In an oligopoly, a few large firms dominate the market, and Sainsbury's is one of the major players in the UK grocery retail.

Supply and demand

In terms of supply and demand, Sainsbury's operates in a highly competitive market where the demand for groceries and household products is consistently high. As one of the leading supermarket chains in the UK, Sainsbury's strives to meet the demands of its customers by ensuring a steady supply of products on its shelves. The company closely monitors customer preferences and adjusts its inventory accordingly to maintain a balance between supply

How Sainsbury’s responds to market changes

Sainsbury's responds to market changes by staying agile and adaptable. The company closely monitors consumer trends, competitor strategies, and market conditions to identify any shifts or opportunities. Once they identify a market change, Sainsbury's takes proactive measures to adjust its offerings, pricing, and promotional strategies accordingly.

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Market Structure:

Tesco has an imperfect competition because Tesco has many subtitues available of products which give customers many choices to choose from. Tesco is also in imperfect competition because they have full control over pricing they can either lower or higher the prices of product but they need to think how our prices affect customers. Other market entrant can face entry barriers from Tesco such as capital rerequirements or brand loyalty.

Demand:

☆ Availability of subtitutes: Tesco have many subtitues available of product, to meet the demand of customers and give many choices to customers.

Supply:

☆ weather conditions could impact the Tesco Supply for example heavy rain could delay the delivery of goods and services.

How Tesco responds to the market changes:

Tesco respond to market changes very carefully for example market change could be prices of products are going up so to make customers coming back to Tesco they started giving promotions such as Tesco clubcard.

The impact of market changes and future trends that could impact a business:

The impact of market changes could impact Tesco positively or negatively, positively because technology makes everything easier for them they don't need to hire employees. Everything is done by robots.

Negatively, because consumer preferences are getting changes in the market, in order to stay competitive, they need to adjust their products according to customer needs and wants.

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market structure:

is sainsbury’s perfect or imperfect?

Sainsbury’s is imperfect and is an oligopoly structure as multiple firms operate within it. this can be applied to most of the UKs supermarket market. Its market structure is this because their products differs in price ,quality and competition.

supply and demand:

when it comes to the supply and demand of Sainsbury's, it's all about the products they offer and the customers who want them. Sainsbury's works hard to make sure they have enough stock to meet the demand for customers.The supply of products directly affects Sainsbury's in several ways. If the supply of certain products is limited, it may result in shortages or stockouts at Sainsbury's stores. This can lead to dissatisfied customers and potential loss of sales. if supply is high they can also change the prices of the products but only if they can balances it out to match other competitors and also keep customers happy, this can also be the same with demand for produce as with a higher demand. sainsbury’s can also demand a higher price for the products but this could have affect on the suppliers so it needs to be balanced out so things match up and customers don’t become displeased

how Sainsbury’s responds to the market changes:

Sainsbury's can respond to market changes by staying adaptable, this could be through new pricing strategies and using new supply chains. They can also look at new market trends and customer preferences to identify demands and keep up with the competition that they have within the market

The impact of market changes and future trends that could impact the business:

Market changes can have a significant impact on Sainsbury's. For example, shifts in consumer preferences this could be with following new trends or new trends within the world such as cost of living having effect on the economy factors overall having a impact on sainsbury’s profits and sales revenue. By keeping an eye on market structures/trends change and a change in demands by adapting their strategies accordingly, Sainsbury's can stay competitive and continue to meet customers needs

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market structure

Tesco is in imperfect competition because they have many competitors that are also UK supermarkets, like Sainsbury’s Morrisons etc. They are all very similar in pricing, products etc. however they’re not completely identical, they have their own brand products that go for very cheap.

Supply and demand

For Tesco, affordability and needs and aspirations for customers are the two main factors that influence a demand for their products. This is because Tesco is known for being cheap and convenient, so they need to keep this image as its attractive to customers. If they raise their prices more people won’t want to shop with them as much.

Different considerations a business needs to have to supply is the ability to produce profitability, as they’re know to be cheap, but they still have to make profit, this means that Tesco has to have a perfectly functioning supply chain that delivers their materials in the right place, time and quantity. This helps for Tesco to meet customer demands.

-how tesco responds to market changes

-the impact of market changes and future trends that could impact the business

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Tesco- imperfect competition as they sell similar products as other supermarkets but at a different price.

Market structure-

Oligopoly

supply and demand-

Trends, Price, Quality, Design, Economy, location, Promotion, affordability, competition, availability of substitutes, GDP, needs and aspirations of customers.

Availability of raw materials and labour, Logistics, Ability to produce profitably,  Competition for raw materials-higher costs, Government support

How Tesco responds to market changes-

Investing in lower prices

The impact of market changes and future trends that could impact the business- ai, reduces the need for employers,

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Market Structure

Tesco operates under imperfect competition, applicable to all major supermarket chains in the UK. Tesco has imperfect competition because it is part of the ‘big 4’ Morrisons, Tesco, Sainsbury and Asda, all of which sell the same types of products for example, vegetables, although all of these supermarkets sell these products, they are sold at different prices depending on the supermarket. However, because the supermarkets have their own USPs, branding and perks they can offer to their customers, they can all be successful alongside each other.

Supply and Demand

Supply:

Availability of raw materials and labour-
Logistics-
Ability to produce profitably-
Competition for raw materials-
Government support-

Demand:

Affordability-
Competition-

Availability of substitutes-
Level of Gross Domestic Product (GDP)-
Needs and aspirations of consumers-

How Tesco responds to the market changes

A recent change in the market is the UK economy because there is a recession, Tesco has responded to this by investing in lowering prices – £200m on more than 1,000 lines – and by launching 2,100 new and improved products.

Negative:

Tesco has become more competitive to keep up with the competitive market, they have also become more efficient and strengthened the value they offer to customers - including the launch of Aldi Price Match as well as their popular Fresh 5 fruit and veg discount proposition, something that has consistently attracted new customers since its launch.

The impact of market changes and future trends that could impact the business

The UK is set to be in a recession until 2026, this is something that Tesco will need to closely monitor so that they can factor this information into their pricing. This is because if people are struggling financially it is important that tesco keep their prices down or even lower them more than they already have for customers to still be able to afford to shop with them, otherwise, customers will have to shop somewhere (perhaps one of the big 4) that has lowered their prices.

On the other hand, if the economy suddenly improved and tesco kept their prices low whilst all other competitors raised their prices to a more fitting price for consumers, tesco would be missing out on mass amounts of profit because although it may only be increasing by a couple of pounds here and there in the grand scheme of things for tesco this will accumulate. It could take a while for them to regain their competitive position. Especially because competitor prices may only rise slightly it might not be something that customers notice so they may continue to shop at competitor stores and not pick up on the cheaper prices at tesco. Still, from a business standpoint if tesco did not change their prices to something around the same price point as their competitors they would end up missing out on mass amounts of profits.

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Market structure:

Asda is an imperfect business because there are only a few dominant suppliers in the market who hold the majority of the market share.

Supply and Demand:

Asda supply and demand is about the products they sell to the customers who might want or be interested in the products they are selling. However if the supply of some products aren’t in stock then it can cause problems between the store and also the customers because they are expected to see that all products are always stocked up.

How does Asda responds to the market changes:

Asda responds to the market changes by looking at the reviews of the store and to see if they are getting any dissatisfied customers and working from that for example if the aisle are messy or they should have more products in etc.

The impact of market changes and future trends that could impact Asda as a business:

Future market changes can impact on Asda as a business because if Asda is not up to date with the future trends of products then they would more likely not have much customers in as customers could expect them to be up to date with the new trends that are in stock so with them not being on top of it then they will losses profit.

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Sainsbury's has imperfect competition. This is because Sainsbury's is a supermarket, this sector had the highest

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Sainsbury’s is an imperfect business as they have various of products in store, home brand or not, these products are alike due to the similar prices.

Sainsbury’s also have a loyalty scheme, launched in 2002, to stand out from their competitors so customers go to them and not lidl.

Market Structure

Suppy and Demand

How Sainsbury’s responds to the market changes?

The impact of market changes and future trends that could impact the business.

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-Market structure

-Supply and demand

-How (your organisation) responds to the market changes

-The impact of market changes and future trends that could impact the business

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1) PESTLE factors (Political, Economic, Social, Technological, Legal, Environmental)

P.4- internal and external factors that influence Tesco. Evaluation on PESTLE factors.

P.5- situational analysis (SWOT) & SMART aims and objectives for Tesco.

Task 2:

P.6- Supply and Demand for Tesco. (Market structure)

M.3- 5C’s

M.4- How Tesco responds to the market changes

D.2- Porters Five forces

D.3- The impact of market changes and future trends that could impact on Tesco.

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market structure

I will write about how big the market is and how Tesco reacts to their competitors changing prices and why reasons they have for doing these things. Eg. Aldi price match campaign

supply and demand

I will write about how Tesco manage their stock and supply’s to match the demand for certain products, for example they will need more bread and milk in stock than chewing gum because more people use bread and milk so they need to be aware of this and order it accordingly. Tesco will also need to try a dm predict future trends and make sure they have a good knowledge of the market and of what their customers will want.

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Is Tesco perfect or imperfect.

One way that Tesco is perfect is with their price match scheme to Aldi which helps boost their profits massively due to it bringing in more customers as they are looking for cheaper prices however they are imperfect because they offer some brands and products that their other competitors don’t.

Market structure

Overall, Tesco has an imperfect market structure due to the fact that although they sell the same products as their competitors, they are sold at different prices which differentiates them and leads to more success and profit

Supply and Demand

One factor that affects the customer demand for products in Tesco is their affordability. Due to their new price match scheme with Aldi, their prices are low but not too low so that people would think that the quality is bad. so this new campaign is bringing in many new customers which is massively boosting profits for Tesco. A factor that affects the supply is the competition for raw materials. Due to there being so many big UK supermakrets, suppliers can increase their prices and demand more and then threaten companies that if they don't pay it they'll move to a competitor which could make the company lose a lot of revenue which Tesco can't afford due to them being the top market sharer.

How Tesco responds to market change

One way that Tesco responds to changes in the market is by investing in lower prices and buying lower cost raw materials for their products to increase profits and then once the market resets and goes back to how it was they will go back to their high quality they were at before

the impact of market changes and future trends that could impact Tesco

They constantly check up on and review upcoming trends in order to get ahead of the curve and to achieve as much profit as they can. An example of this could be how they are trying to become as sustainable as possible in a small amount of time so they can capitalise on the customers who care a lot about the environment to maximise their profits. Another example could be their innovation and continuous development of the technology used in their stores, for example when they were the first company to bring in self scan tils to the UK and all of their competitors soon followed suit.

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market structure: Sainsbury’s is in imperfect competition because they have loads of competitors such as Asda, Tesco, and another who have similar products with different prices and each business have their own unique selling points which make them imperfect for each other.

Supply and demand: Sainsbury’s has a very high demand in the market which means it has very significant supply chain which mean it allows them to keep their prices cheaper.

How Sainsbury’s responds to the market change: Sainsbury's continually introduces new products and services to meet evolving consumer preferences and market trends. This may involve developing own-brand products, expanding organic or plant-based offerings, or partnering with popular brands to offer exclusive products

﻿﻿The impact of market changes and future trends that could impact the Sainsbury’s :The continued growth of e-commerce is reshaping the retail landscape, including grocery shopping. Sainsbury's must invest in its online platform, enhance its digital capabilities, and optimize its supply chain to meet the increasing demand for online grocery shopping.

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My choses business Morrisons is perfect in a way, this is due to the fact that they sell many of the same products at pretty much the same price compared to their customers for example, milk, sugar, ect. However on the other hand Morrisons is also imperfect, this is because they have many deals and offers for there customers to try and get an advantage over there competitors which makes them imperfect.

-market structure, Morrisons is imperfect this is because they are always fighting to have an advantage over there competitors by, bringing out special in store offers, offering discounts for people only in their stores and trying to be the best priced. they mainly do this buy bringing out things like loyalty cards where if you have this card you will only get offers in just Morrisons which gives a much better advantage over competitors because customers would want better deals.

-supply and demand, this is a factor that effects Morrisons in a big way, this is because the need to make sure there prices are much better than there competitors. they also have to make sure they are selling what there customers need or want. this is because if they sell products at much better price compared to there customers this gives them a much larger advantage over there competitors because customers always want a better deal. also if they have more what the customers want or need people rather shop at Morrisons as they have what people want.

-how Morrisons responds to the market changes, Morrisons does this by finding the best prices from there suppliers and selling them for a low price to there customers very early to make sure they have the advantage in the market. if Morrisons does this, Morrisons will be gaining more customers because they are matching with trends way before there main competitors do and hopefully taking some of there market share.

-the impact of market changes an future trends that could impact the business, if trends in the market change this means that Morrisons has to make drastic changes to their stock to make sure they meet customer needs. for example, if more cruelty free products come into fashion, Morrisons will have to change a lot of there stock especially in the body care isles to make sure they retain there image and customers.

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Market structure

I will write about how tescos react to their competitors. They do this through changing there prices and why they are doing it. for expample theirs aldi price match scheme.

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Market Structure

Most supermarkets are imperfect due to the fact there is massive competition including the big three supermarkets that are located in the UK, those being: Tesco, Asda and Co-Op - Waitrose would respond to the market changing by adjusting their costs and creating brand own foods similar to the Tesco brand own products, this can make the options for consumers choosing a business more limited and allow for their to be less competition this impact allows for Waitrose to be more prepared for future trends such as self checkouts which have become a basic need in most supermarkets.

Supply and demand

Waitrose is what many would call a high-end supermarket, it is much more expensive than many other supermarkets like the ones previously mentioned but to Waitrose's credit it is also known as high quality supermarket however this makes demand for the business quite low due to their being many other alterative for the consumers at more affordable prices which considering the time that we live in the needs of the customers are higher than ever with cost of living dictating the needs of customers which is food and if a supermarket is running for high pricing it causes less profit for the business due to no one shopping there

How Waitrose responds to the market changes?

Waitrose hasn't been apposed to changing its high prices depending on certain market changes - as we all remember COVID-19 took over our lives for years but during this time social distancing was at a high so people going out to shop was little to none hence why during the pandemic Waitrose cut their prices down which many people called 'a war they can't win' due to the massive business such as Tesco and Sainsburys running the supermarket businesses, an article by BBC stated " "It's a war Waitrose and Co-op can't win," he said. They don't have the market clout of giants such as Tesco, which can pressure suppliers into giving it better prices than smaller rivals, he said."

The impact of market changes and future trends that could impact the business

What Waitrose needs to consider for the future is the sustainability of the environment (I ran out of time)

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market structure

matrix structure

supply and demand

different

how does the bussenes respond to makret changes

impact of marketing changes in the future