{"id":28542,"date":"2013-06-27T13:47:51","date_gmt":"2013-06-27T08:17:51","guid":{"rendered":"http:\/\/vskills.in\/certification\/tutorial\/?p=28542"},"modified":"2024-04-12T14:18:58","modified_gmt":"2024-04-12T08:48:58","slug":"the-new-competition-in-retailing","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/the-new-competition-in-retailing\/","title":{"rendered":"The New Competition in Retailing"},"content":{"rendered":"

Certify and Increase Opportunity.<\/span>
\nBe <\/span>
\nGovt. Certified Marketing Manager
\n<\/span><\/a><\/p>\n

The New Competition in Retailing<\/h1>\n

Competition problems occur most often in retailing, since markets\u00a0will only tend to work imperfectly when there are asymmetries in bargaining power\u00a0(consumers are small), high transactions costs (consumers are immobile), information\u00a0asymmetries (consumers are uninformed), or vertical restraints.<\/p>\n

The issues typically covered include:<\/p>\n

    \n
  1. Pricing issues (including excessive pricing, discriminatory pricing,\u00a0<\/span>predatory pricing, and loss leading);<\/span><\/li>\n
  2. Merger issues (for which market definition is crucial); and<\/span><\/li>\n
  3. Vertical issues (including vertical restraints, differential discounting, and\u00a0<\/span>own-brand competition).<\/span><\/li>\n<\/ol>\n

    In order to analyse these various issues, the following framework is suggested:<\/p>\n

    1. Identification of competition issues
    \n2. Preliminary analysis of retailing:<\/p>\n

      \n
    • the characteristics of consumers; and<\/span><\/li>\n
    • the dimensions of competition between retailers.<\/span><\/li>\n<\/ul>\n

      3. Market definition
      \n4 Barriers to entry
      \n5 Competition assessment:<\/p>\n

        \n
      • \n
          \n
        • market structure and merger issues;<\/span><\/li>\n
        • pricing issues; and<\/span><\/li>\n
        • vertical issues<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n