Explain one influence on the choice of suppliers for a large discount supermarket.

One factor that will influence the choice of supplier by a large discount supermarket will be the ability of the supplier to supply goods at a suitably low purchase cost to enable the supermarket chain to offer cheap prices to store visitors. Discount supermarkets such as Aldi and Lidl position themselves in the supermarket industry by offering consistently lower prices compared with mainstream chains such as Tesco and Sainsbury's. In order for them to be price-competitive (as well as achieve acceptable gross profit margins at the checkout) discount supermarket suppliers will need to operate at a high scale and efficiency which means they can afford to supply at low-cost as well as make an adequate return themselves. This will probably mean that a discount supermarket will tend to buy from larger suppliers who can afford to offer low prices rather than smaller suppliers whose unit costs will be too high.

Related Business Studies A Level answers

All answers ▸

how many users are invoked in business meeting?


Analyse the benefits for a national firm of a government adopting protectionist trade policies?


Analyse how delayering might affect the level of profit a business generates.


Explain one advantage and one disadvanatge of using temporary staff. (6 marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy