Australian Supermarket and Grocery Store Industry

The Australian Supermarket and Grocery Store retail industry is highly concentrated in Australia.
The four largest operators account for over 80% of industry revenue in 2017-18, with the two (2)
largest operators together holding over 65% of the industry revenue (Cloutman 2018, p. 19).
The remaining 20% of the market is shared between a range of specialist food retailers,
convenience stores, cafes and food warehouses.
You are required to:
a. Apply your understanding of the microeconomic concepts to investigate and summarise
the major features which characterise the economics of firms in this industry (approximately
500 words). Examples to utilise for microeconomics include: Supply & Demand,
Opportunity Cost, Elasticity, Scarcity, Production Cost, Law of Diminishing Return.
b. Discuss which of the four (4) market structures best describes the Australian Supermarket
and Grocery Store industry. Explain the reasons for selecting these four structures
(approximately 500 words).
c. Describe and analyse the economics and pricing policies that you would to expect to find in
the Australian Supermarket and Grocery Store industry (approximately 500 words). For
example: how are they currently pricing in the industry? You’ll need to research
supermarket pricing policies and practices
d. Choose one of the companies in the Australian Supermarket and Grocery Store industry
and discuss the key factors which determine product pricing, and the relative importance of
price as a competitive factor (approximately 700 words).
e. Write a conclusion which summarises the insights which you have gained from this
assessment task (approximately 300 words).