Morrison is reducing Safeway's prices by up to 6% and Sainsbury is bound to see lower prices as one of the basic changes necessary to drive its recovery. With both Asda and Tesco committed to price leadership, this could result in a step down in industry profitability. displayed 300 characters
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Although international business is still growing, and is expected to contribute greater amounts to Tesco's profits over the next few years, the company is still highly dependent on the UK market (73.8% of 2003 revenues). While this isn't a major weakness in the short term, any changes in the UK supermarket industry over the next year - for example, like the Morrison's group successfully purchasing the Safeway chain - could alter the balance of UK supermarket power, and affect share... displayed next 300 characters
This is due to the fact that buyers will exercise their power of buying and move to other supermarket retailers if prices are too high. For example if a can of baked beans is price too high in the Tesco
There are several alternatives to make a company less venerable. For the bargaining power of customers, in US, the MCOs are becoming stronger and stronger while the battle in prices against the purchaser outside the US is not decreasing so pharmaceutical companies cannot avoid reducing the prices of drugs...
This is due to the fact that buyers will exercise their power of buying and move to other supermarket retailers if prices are too high. For example if a can of baked beans is price too high in the Tesco superstore, customers will use their buying power and move to another food retailer such as Sainsbury, Morrison or Asda...
It is not fair to try to justify the increase in gas prices by pointing the finger at the cost of oil. If the supply and demand can not be leveled out, more efficient ways need to be developed to make up for the limited supply...
With gasoline prices falling at a somewhat of a rapid rate, more and more Americans are going out and spending money on holiday gifts. Many retail stores stayed open on Thanksgiving, Kmart was one of the large retail stores that had its doors open all day...
Question #1: Will gas prices ever go back down to $2 a gallon?
Thanks for your question. I had a very good chuckle over that one.
I'm sorry to say that gas prices will not be going down any time soon...
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