market structure question
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market structure question Reference: The Economist (online, Nov 25, 2014).
�Carrefour has recently announced that sales are falling at its hypermarkets in France and Albert Heijn, a Dutch supermarket chain, has been losing market share in its home territory � the price gap between the discounters and the mainstream supermarkets remains substantial: in Britain, their products cost a sixth less than its competitors, according to data from LEK Consulting, a management consultant �� See Bb for this article in full. With the opening of Aldi stores around the country, Australian shoppers are about to experience the cost savings of this popular and successful discount supermarket chain.
First, discuss the characteristics of the supermarket industry in Australia prior to the Aldi expansion of stores across the country. Which market type has these characteristics?
Next, explain how the addition of the Aldi discount supermarkets to the supermarket industry in Australia will impact on this market type. For example, will this market type change? Explain your answer.
Finally, use one or two demand and supply models to demonstrate the price and quantity outcomes in the canned tomato soup market in Australia before and after the Aldi expansion. Explain the model(s) in terms of factors affecting supply and demand.
Add an Introduction and a Conclusion to your business essay. presentation, academic writing conventions and content. Use the Assignment checklist on page to finalise your essay.
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