However, to do so, they need to be organised, their number needs to be relatively small, and the switching cost to go from one competitor to another needs to be small.Ĭonsidering these criteria, many analysts argue that bargaining power of buyers in the UK supermarket industry is relatively weak making the industry attractive and profitable for the existing companies. Powerful customers drive prices down and can demand more products and services at the existing pries. It is worth mentioning that this industry is dominated by a small number of large supermarket chains.īargaining power of buyers in the UK supermarket industry competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants can impact on the UK grocery and supermarket industry and erode the profitability of the existing market players. To this end, this article explores how the five forces i.e. It aims to examine the competitiveness and attractiveness of the UK supermarket industry which is worth approximately £190.8 billion and is expected to grow in coming years (IBISWorld, 2023).
This is a detailed Porter’s five forces analysis of the UK supermarket industry. Porter’s five forces analysis of the UK supermarket industry
