Competitive reactions following the introduction of a hard discounter : a case study focusing on Maltese supermarkets

Abstract

Purpose : this dissertation aims to identify the effect on supermarkets following the entry of a hard discounter in Malta. It also tries to identify competitive reactions that these supermarkets have adopted; highlighting those which are considered more successful than others. Design / methodology / approach : Following the quantitative analysis of the Retail Price Index to try and establish the effect of the discounter on the market prices of the commodities it operates in, interviews were held with supermarket managers in order to identify their views on the subject and consequently to be able to build a case study. Findings : From a research perspective, this work provides empirical evidence that local operators can adapt through competitive reaction in order to remain competitive even against much stronger competition. From a practical perspective this work provides a contribution by listing the various activities local supermarkets have tried since the introduction of the discounter and thus provides fertile ground for the further development of such ideas to pursue future growth.