Sample Essay

The power of the suppliers is also limited in the supermarket/ hypermarket industry as the companies operating in the industry tend to launch their own range of products and retail brands. These brands significantly reduce the market for the suppliers therefore reducing their power in the industry as well. Aside from this companies like Wal-Mart have gone into agreements with their suppliers for mutually beneficial operations that restricts the operations and sale of the suppliers to the competing companies.

The rivalry in the industry is very high. This is attributed to the large number of competitors operating in the supermarket/ hypermarket industry. Wal-Mart, Carrefour S.A., and Tesco plc are the top super market, departmental stores and hypermarkets in the industry. Aside from this many localized and multinational large and small scale super market chains also exist in the market making rivalry for the supermarket/ hypermarket industry significantly high.

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