The Grocery Food Market in Norway – Cheap Chains Versus Expensive

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INTRODUCTION
I would say that the grocery market in Norway is a whole big competition. There’s a few big chains, such as Rema 1000, ICA and Kiwi, along with some other chains and small grocery shops in people’s neighborhoods. It’s hard to know who is the biggest, because in a grocery shop, prices mean everything. People want it cheap, and people want choices. With as many big shops, we get choices, and we get choices in the shop as well. Choice to choose quality, choice to choose the cheapest. In the UK, Tesco is today a monopolist in the market; they have over 30% share in the market. But in Norway, none of the companies have a remarkable bigger share than the other. The market is an oligopoly, meaning that the market is dominated by many large companies, all of them being oligopolists.You can’t say if the market is elastic or inelastic, because it’s different departments. But for example normal groceries suck as milk etc., the market is very much elastic. People won’t buy it if it’s a huge difference in price, but all of this has to be together with quality. People know what they have in grocery stores, and they’re most often aware of what supermarket is the cheapest and also aware of what they want – quality or quantity.

The grocery food market in Norway – cheap chains versus expensive

DEMAND CHANGES?
Our demand for cheap or expensive chains is very unpredictable. 1.Place factor – where is the chain? Is it near yourself? 2.Demand for that particular chain increases in the area because there’s not any options. 3.Supply of groceries depends of ability of the firms to respond market demand, and of course, the grocery market will always be there, it’s just a competition, who are going to win the audience? 4.Time element – some suppliers can respond quickly to market demand – other cannot. If there’s a product that is very popular at the moment, the chain who has the most of it will be the winner. 5.It is very important to have complementary goods...
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