Economics Assignment Writing description analysis Topic: Market Structure and GDP of UK retailers
Question??
Eddie Hobbs designed a TV show to open the eye of consumers of Ireland through his fourth part TV show” Rip of Republic” at the time of summer in 2005. This was television show that mainly focuses on cost of living and people who were working in Ireland. The show was very popular among the Ireland audience. As per RTE (Ireland’s National Television and Radio broadcast) the prices were increasing by 4% to 5 % each year from 2006 to 2008 that affect the whole cost of living of life that lived around them. In conclude the Irish economy was “eating the Young”.
As per economic journalist, the “Rip off republic” is the TV show that was of huge success and since then, Ireland enjoyed the combination of economic recession and fall in prices. This was the largest attraction for the audience and the Irish economy was eating its young people. (Lyons, 2010)
Answer the Question frame is:
Market structures and dynamics
To analyse an economic sector of choice, the internal market structures and dynamics that has been analysed is as discussed below:-
Retail sector is the economic sector of our choice. The market structure of retail sector in Irish economy is described as below:-
In the year 1977, there were about 40000 retail outlets in Ireland and it increased with 53000 in the year 1998.
The level of food product is low in Irish market when compared to other market.
The number of retail outlets has been increased in the Irish economy.
There has been a significant reduction in the market with respect to the number of shops and grocers in the market. There has been increase in the rate of food sector in the recent years that creates an increase in expectation of high competition and also there has been the entry of the UK food retailers into the Irish economy. There are high chances of increase in the volume of sales in the future perspectives. There is no dynamics associated with the clothing sector and it has remained silent in the recent years. There is low participator in this sector.
The changes that have been taken place are as follows:-
There have been huge reductions in grocery shops and the rate of percentage of GDP is also growing in the Irish economy in these years which is the major dynamics associated with the market. There is no change in the ratio of GDP according to the growth of the economy. In retail sector, the area of employment is also increasing by 10.8% when it is compared to other European countries. Significant changes have been arisen with respect to part time employment and female employments in terms of retail segment. It is concluded that most of the jobs will be part-time. There is strong relation with the retail sector in the Irish economy and through this approach; almost 50% of employees are employed in the retail market of Irish economy. When there is a comparison of Irish retailers and UK retailers in the market, the Irish retailers are low performers than UK retailers. There is high competition in Irish market especially in retail sector. In the next three to five important years, there will be kind changes associated with the retail segment.
In case of food sector, there will be increase in concentration level, increase in the size of the shop of the retail sector. Entry of discounter is hard in Irish market and in case of clothing sector; there will be high increase in the concentration level, there is high level of potential to increase the large scale of clothing sector and continued development.
As per report of 2005, that is covered in “rip-off-republic” described about the economic recession that impacts the purchasing power of the consumer when there is increase in the price level.
Within that context emphasis has been given to the following:
The importance of key players in the Irish economy is as follows:-
Key players play an important role in the market.
Consumers: Consumers in the today’s market are the major players whose power of spending creates the sector, thus the total retail sector is established to fulfill the demand of the consumer. The importance of consumer in Irish economy is based on the consumer’s standard of living or the cost of living. The importance of consumer spending helps the Government to decide the power of investment. They play an important role that provides information and strategies for business.
Government: Government gets revenues and they provide permissions for investors. Thus they are playing an important role. Taxation is defined by the government. Government ensures the rights, ensures the contracts, rules and regulations, legislations for the product. They legally fulfill the task of the company and distribute income equally.
Therefore, all the players are playing an important role in the economy of the market. They are helping to make up the market with the help of spending power and with the help of consumer investments. (Ohiostate.edu, 2008)
The range of economic systems in Irish economy has clear aspirations.
For retail market, restrictions from government are very low and there is high profit in this market. There is free entry in this market sector that carries the concentration of high level of cost and includes high amount of prices. There is high competition in this market and consumers get extra benefits in this market because they have huge number of options. Thus there is perfect competition in this economy. (Vitez, 2012)
The factors which determine demand and supply determine the effect of supply and demand, e.g. on prices and production are as follows:-
In retail sector in Irish economy, there is high demand of products in the market as this industry contains the regular use of products. There is regular supply of products in this market and this carries important information of products. There is high availability of products in this segment and people carry great advantage through this sector. The basic needs of the consumer are fulfilled and they become satisfied through this segment successfully. There is high demand of products and thus the supply also increases day by day. For example: in terms of food industry, the consumer demands high variety of foods day by day and this way, there is an increase in supply of this products. The same is applicable in clothing industry because the consumer is aware and they want good source of clothes with increased number of varieties. Thus these were two examples to explain the supply and demand part. (Ohare, 2012)
Different market structures, e.g. monopoly, oligopoly, perfect and imperfect competition is as follows:-
There is perfect competition in this market sector. Perfect competition describes the competition where there are numbers of buyers and number of sellers. There are different types of product in this market and consumers have choices in this market.
In case of monopoly, there is only one seller and that single seller is restricted with high amount of cost in the economy. There is no competition in this market. For example: Electricity
In terms of oligopoly, there are few of the firms that are associated with the market structure and this is based on the high barriers to entry in the market.
The effects of market structures upon the conduct and performance of business organizations is as discussed below:-
Market structure consists high stability of market and it influence the structure of the market depends on the participants of the market. Market performance refers to objectives in the market. These include relationship between the objectives of the market and create high level of stability and quality of the food. If there is recession in the market, it affects the business strongly and the whole market becomes affected through this structure of the economy. This also creates low performance in the economy. The television show Rip off Republic is the best one to understand more about this strategy.
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