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The Dominant Economic Elements of the meals and Drug Retail Industry

DOMINANT ECONOMIC FACTORS

OF THE MEALS AND DRUG RETAIL INDUSTRY

It is extremely important to know very well what the dominant monetary factors are within an industry where you will be participating. These factors employ a strong influence in deciding the corporate strategies a company will opt to implement. How do a corporation define and implement their corporate approach without understanding the environment of the marketplace they happen to be in? They simply cannot! The economic factors to be looked at are the following: market size, scope of competitive rivalry, industry growth rate, amount of rivals, number of customers, amount of vertical integration, economies of scales, resource requirements for industry access, and profitability of the industry. Every one of these factors will be described in the following paragraphs.

The supermarket retail market is definitely a $363 billion industry(sales 2000). Approximately $272 billion in product sales, or 75%, is attained by 25 companies with 16,000 stores. The full total number of retail food markets total 127,000. It really is apparent that the marketplace share can be dominated by a select few corporations. The most significant company is Kroger (11% market share), accompanied by Albertson s(9%), Safeway(6%), and Winn-Dixie(4%). Find appendix A for the most recent sales figures of the most notable 25 retail grocery industry. The medicine store retail industry is approximately a $146 billion industry.

The scope of competitive rivalry is powerful. The competition among the very best 25 retail stores is extreme at the regional and nationwide level. For case in point, Kroger operates in 46 major marketplaces and has held the quantity (1) or (2) posture in 40 of

DOMINANT ECONOMIC FACTORS

OF THE MEALS AND DRUG RETAIL INDUSTRY

It is extremely important to know very well what the dominant monetary factors are within an industry where you will be participating. These factors employ a strong influence in deciding the corporate strategies a company will opt to implement.

Assignment ID
100011718
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CREATED ON
30 July 2018
COMPLETED ON
31 July 2018
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