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    'the 5-firm concetration ratio for grocery retailing in the UK increased from 62.7% in 1994 to 72.3% in 1999'

    Examine the factors whihc might have contributed to this increase in the concentratio ratio (40 marks).


    I have so far:
    - Lack of land for expansion, so any extra land goes to the biggest competitors, resulting in biased growth.
    - Diversification of Supermarket Retailing into electricals, books, cards, clothing etc. Consumers are attracted to the convinience of shopping in a near department store. These goods are also provided at a competitive price since the competitiors have huge bidding power.
    - Acquisition and takeover of smaller firms that can't compete on price. Competition commission approved of most acquisitions since they don't endanger consumer interests.
    - Large barriers to entry and exist, as the market is oligopolistic. Leading supermarkets advertise greatly, this is a sunk cost, and so barrier to exit. Stores also introduce loyalty cards and build up a brand. Consumers tend to shop in one market continually (barrier to entry. As a result there are no new entrants.
    - Smaller retailers have been priced out of the market, due to the economies of scale enjoyed by larger retailers.

    Any others? I don't feel like I've written enough.
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    I think you have got enough points, but perhaps need to work on evaluation? Looking at the markschemes for unit 6, quite a lot of marks are allocated to evaluation.

    Btw, your answer is really thorough and I'm impressed.
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    Just to add on to the evaluation thing,

    Talk about the relative importance of each factor, for example the oligopolistic nature of the market might be the most important factor that affects all other factors, or the lack of contestability.

    I'm sure that you're capable of evaluating each point..... and that should give you full marks
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    (Original post by lilsunflower)
    I think you have got enough points, but perhaps need to work on evaluation? Looking at the markschemes for unit 6, quite a lot of marks are allocated to evaluation.

    Btw, your answer is really thorough and I'm impressed.
    Lol, thank you. My points amounted to one and a half sides on word though, just felt I needed more due to the large amount of marks going

    Full Marks! I wish

    Have you got physics tomorrow as well lilsunflower?
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    (Original post by Mysticmin)
    Lol, thank you. My points amounted to one and a half sides on word though, just felt I needed more due to the large amount of marks going

    Full Marks! I wish

    Have you got physics tomorrow as well lilsunflower?
    Nopes.. my only other exam is an Econs AEA on Thursday. Poo!
    I'm just do Lit, double Maths, History, Econs and GS. I'm totally not a science person as you can see.
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    (Original post by lilsunflower)
    Nopes.. my only other exam is an Econs AEA on Thursday. Poo!
    I'm just do Lit, double Maths, History, Econs and GS. I'm totally not a science person as you can see.
    Yeah you are, you do double maths. Without maths science would be screwed
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    for that question you need to Make 2 points (3 MAX) but they will need to inc. analysis and evaluation. So you got more than enough.
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    (Original post by HamaL)
    for that question you need to Make 2 points (3 MAX) but they will need to inc. analysis and evaluation. So you got more than enough.
    Yeh that's true. For most questions they ask for about 2-4 points MAX and the most marks come from evaluating each point "well".
 
 
 
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