![]() ![]() ![]() Publix is the third-largest grocery chain in the U.S. Most grocery retailers are highly efficient operators, and they use economies of scale not only to ensure adequate selection of products but turnover, high service levels from supply chain partners, and to lower costs. ![]() Economies of scale are critical in purchasing and operations. In the grocery business, economies of scale are important. Furthermore, while a there is low risk of a new entrant starting organically, there are many established grocery companies that are not presently operating in Publix' markets that could move into those markets if they wished, and without facing significant barriers. On one hand, there are barriers to entry to the grocery business, but these barriers are not insurmountable given enough capital. The threat of new entry is considered to be moderate. There are two critical dimensions to the threat of new entry for Publix. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
February 2023
Categories |