SOC 2080 Lecture : Feb.16 Lecture
16 Feb 2012
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Document Summary
Food retailers: the real power in the agro-food complex. [buyers are retailers (grocery stores) and sellers are processors-> they sell to the retailers] >concentrated and/or purchases large volumes relative to sellers (i. e. loblaw s buys a lot of process) >purchases undifferentiated products (products like fruits and vegetables -> they aren t branded) >pays small price switching suppliers (easy to switch suppliers) >can threaten backward integration (processing your own food i. e. processing your own soup rather than buy from campbell s) >suppliers product unimportant to service offered by buyer. >buyer has better intelligence (information) examples? (when products get scanned they are catalogued so buyers know what ppl are buying) >buyer can easily influence consumer purchases (marketing; putting food on sale, having the food stands near check out etc. ) >where a few big companies co-exist and processor sector more concentrated than retail.
