INTENSIFYING OF COMPETITION AND DOMINANT POSITION IMPACT OF LARGE RETAILERS IN RELATION TO MANUFACTURERS

Abstract

Increasing concentration and increase in the size of retail companies plays a crucial role in permanent and apparent strengthening of retail position in marketing channels. Purpose and motive of this paper is increase in competition and concentration in contemporary market. Contemporary trade management and marketing with use of modern information technology intensify the development of large retail chains. Retailers are forcing manufacturers they cooperate with to directly participate in building a competitive position in the global market. Competition between producers in the battle for entry into the network of large a retailer is intensive. In order to analyse competition on the market we used analyses and syntheses. Strengthening of products with private label allows differentiation from competition and successful market positioning. The effects of power of large retailers and the retail concentration are in favour of producers, thanks to the possibilities of a wide and intensive coverage of the market. The development of partnership and long-term relationship between large retail chains and producers requires mutual trust and sharing of long-term relationships vision. Market impact of the paper is in insight to development of relationships between participants in marketing channels in conditions of increasing competition and concentration. 

Key words: global market, competition, concentration, retailers, manufacturers