C.

Economic barriers
Traditionally, economic obstacles have been connected with business economies of scale.
Large retailers benefit from significant economies of scale on input prices, one of most major
cost component in food shopping, and can also take advantage of other forms of scale
economies in the categories below:
 Expanding manager’s specialism.
 Possessing access to a wider choice of financial products and reduced interest rates
when having to borrow via banks.
 In media marketplaces, extending advertising expenses across a wider spectrum of
production is a good idea.
 Returns to be exploited in favour for the purpose of scaling in the production function.

D. Transparent
Transparency in supermarket operations and pricing allows for quick response to rival smart
decisions, particularly in the areas of recognized products (fundamental goods which are
frequently purchased and require a greater price consciousness), packaged goods, and a
sample basket of food items.

E. Power of Supermarket
The dominance of supermarkets comprises of four steps and self-reinforcing, taking into
consideration the structural difficulties that are recognized and that condition the operation of
contemporary transportation in the food retail sector:
 Regional majorities exacerbate the oligopolistic nature of the sector.
 Consumer builds strong bonds with certain supermarkets, and significant gaps and
high switching costs reduce the competitive strain on such marketplaces.
 Independent companies' business models rely on reaching quite so many people as
necessary in need to maintain the continuous research and development and
innovative revenue growth model, which puts them at the hands of supermarkets.
A supermarket can usually quickly replace a provider, but the absence of a provider
can transform a virtuous development cycle into a downward spiral and market exit.
 Supermarkets have become major competitors of independent brands since they
are vertically integrated into the food chain by creating and selling their own brands.

Supermarket anti-competition practices significantly affect makers of farming items and on

the agri-food business. Farming items might be affected by such practices in various ways.
On the off chance that makers supply brand-name or non-marked products straightforwardly
to supermarkets, they might be liable to manhandles in regards to get to expenses and terms.
In the event that makers coordinate upward into modern handling and foster business brands,
they might be influenced by the practices depicted in this part. Makers may likewise languish
by implication as info providers over the agrifood business. The impersonation and cost
limiting model generally embraced by supermarkets, notwithstanding how beneficial it could
be intended for them, doesn't cultivate advancement and usefulness development by makers
and additionally providers, in this manner prompting lose-lose rivalry, as the last may not
acquire adequate benefits1.
In numerous nations, particularly non-industrial nations, agribusiness is a pivotal mainstay of
the economy. In any case, contest law and strategy typically do exclude arrangements to
handle rivalry related issues in the horticultural and agrifood areas. In most, if not all, nations,
the extent of rivalry enactment is restricted to taking care of market fixation and dealer power
at the creation level under maltreatment of predominance arrangements, and this doesn't
address contest issues emerging from purchaser power. To accomplish a supportable and
serious horticultural area, States should address cutthroat bottlenecks in food retail.

1
A Seth and G Randall, 1999, The Grocers: the Rise and Rise of the Supermarket Chains (Kogan Page
Publishers)