Introduction :: Economics

IntroductionThe aim of this coursework is to use economic theory and explain howsuper commercialises in my area postulate for custom. To go forth a faircompetition, the four dominant super marts, Sainsbury, Asda, Tescoand Morrisons are chosen. I shall investigate how the big fourcompete for profit against each otherwise 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 dip with a complete list of common items andcompares each different supermarkets product listing.This is the basic cast but comprehensive analysis and researchtechniques shall be started later on as we familiarize with economicskill and business brain of these clever large firms.Competition TheoryThe medium in which a monetary exchange on a basis of business valuestakes place is known as The marting System or The Marketing Industry. straight The Market is such a place where buyers and raters 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 defined as a place of competition, wheresurvival of the fittest is the only necessary skill. A market can bean opportunity for success or a road to downfall.There are two kinds major kinds of businesses in a market that areProduct 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 environment 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 themarketable produc t and hence 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 satisfaction 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