... few firms in the market describes it as being oligopolistic. Figures from: http://www.acnielsen.co.uk/news/NovemberGroceryShares.shtml The essential purpose of all leaders in this structure is acquiring greater market power and manipulation in prices. As a result all companies identifies as intensively competitive retailers. On the other hand those firms are interdependent, so successful actions of one to make better profit directly affect another rivals by taking away their sales. It follows that companies in the grocery sector all tend to follow similar business model. They reduce their own costs and satisfy consumers demand for cheaper goods. (Lawrence,2004http://browse.guardian.co.uk/search?month=06&lDim=N%3D3096&search=brutal+battle+for+position&year=2004&search_target=%2Fsearch&fr=cb-guardian) Moreover branding and advertising is another strategy used in the market where all products are quite similar. Own-labels help to distinguish the particular commodity from competitors, and to increase loyalty of customers. In addition the frequency of advertising not only strengthens brand image, but also creates a barrier to new firms entering the market. As entrants necessitate large capital, they ...

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