The suppliers in the UK market enjoy strong market position, which allows for decreasing manufacturing costs as well as benefiting from economies of scale. The high competition decreases the bargaining power of suppliers who remain focused on securing their share in the value chain. In the food industry, new product categories are constantly emerging (Bord Bia, 2009). In addition, the power of suppliers is limited due to the expanding power of buyers, who face much less switching costs. Research has shown that there has been a significant growth of discount grocers in the market, which affects heavily the role and market share of established retailers in the UK (KPMG,
The suppliers in the UK market enjoy strong market position, which allows for decreasing manufacturing costs as well as benefiting from economies of scale. The high competition decreases the bargaining power of suppliers who remain focused on securing their share in the value chain. In the food industry, new product categories are constantly emerging (Bord Bia, 2009). In addition, the power of suppliers is limited due to the expanding power of buyers, who face much less switching costs. Research has shown that there has been a significant growth of discount grocers in the market, which affects heavily the role and market share of established retailers in the UK (KPMG,