<p>The Swedish food retail market contains of three major actors, ICA, KF and Axfood, all in all dominating 75 percent of the total market shares. The scant number of retailing actors indicates that the Swedish food retail market is a highly concentrated oligopoly, which as a fact has given rise to definite discussions and argumentations concerning the market situation. But is the food retail market imperfect and how do we reach a workable competition? Economic theory does not provide any clear answer on these questions, but is rather divided into two fundamentally different approaches to define competition: the static and the dynamic perspective on competition. </p><p>In an attempt to examine the competition on local Swedish retail markets, the purpose of this study is to carry out an econometric model estimating the situation. The model serves to explain the variation of ICA’s achievements measured in terms of turnovers obtained in the company. The explanatory variables composing the model are divided into three separate groupings: degreeof market concentration, storespecific factors and region-specific factors. Furthermore, in order to find out which one of the competitive explanations best fits the reality, the regression results are interpreted from a static and a dynamic perspective of competition. In part, we also aim to compare the results with the outline of the Swedish competition law. </p><p>We found that the level of concentration obtained in our material is high and is steadily increasing. We also found that stores do not, in any great extent, use price, service and quality as competitive methods. Thus, to gain competitive advantage, market actors must find other ways to carry out strategic market activities. The region-specific variables had either none or very little influence on ICA’s turnover. According to these findings, neither the static nor the dynamic perspective of competition is solely able to produce an accurate method for reaching a state of a workable competition. Instead, a combination of the static and the dynamic ideas may be regarded as the most advantageous way to generate suitable conditions for competition to be efficient. Therefore, in order to promote workable competition, the Swedish competition law must consist of a balance between the static and the dynamic view of competition.</p>

The Swedish food retail market contains of three major actors, ICA, KF and Axfood, all in all dominating 75 percent of the total market shares. The scant number of retailing actors indicates that the Swedish food retail market is a highly concentrated oligopoly, which as a fact has given rise to definite discussions and argumentations concerning the market situation. But is the food retail market imperfect and how do we reach a workable competition? Economic theory does not provide any clear answer on these questions, but is rather divided into two fundamentally different approaches to define competition: the static and the dynamic perspective on competition. In an attempt to examine the competition on local Swedish retail markets, the purpose of this study is to carry out an econometric model estimating the situation. The model serves to explain the variation of ICA’s achievements measured in terms of turnovers obtained in the company. The explanatory variables composing the model are divided into three separate groupings: degreeof market concentration, storespecific factors and region-specific factors. Furthermore, in order to find out which one of the competitive explanations best fits the reality, the regression results are interpreted from a static and a dynamic perspective of competition. In part, we also aim to compare the results with the outline of the Swedish competition law. We found that the level of concentration obtained in our material is high and is steadily increasing. We also found that stores do not, in any great extent, use price, service and quality as competitive methods. Thus, to gain competitive advantage, market actors must find other ways to carry out strategic market activities. The region-specific variables had either none or very little influence on ICA’s turnover. According to these findings, neither the static nor the dynamic perspective of competition is solely able to produce an accurate method for reaching a state of a workable competition. Instead, a combination of the static and the dynamic ideas may be regarded as the most advantageous way to generate suitable conditions for competition to be efficient. Therefore, in order to promote workable competition, the Swedish competition law must consist of a balance between the static and the dynamic view of competition.

E-handeln växer mer och mer för varje år och det har aldrig någonsin varit lättare att köpa produkterän vad det är idag. För fysiska butiker är det därför viktigt att använda sina konkurrensmedel,marknadsföringsstrategier och handelsmiljö på rätt sätt för att överleva på marknaden och för attöverleva konkurrensen från den växande e-handeln. De fysiska butikerna behöver fokusera på hur dekan vara konkurrenskraftiga på marknaden för att inte bli utkonkurrerade av e-handeln. Syftet medstudien är att undersöka hur lokala klädbutiker utan e-handel överlever och bemöter konkurrensen fråne-handeln.Vi har använt oss utav en kvalitativ metod för att kunna besvara vår frågeställning och vårt syfte. Vigenomförde kvalitativa intervjuer med fyra butiksägare av fyra små butiker som inte har någon ehandel,och vi analyserade sedan deras svar genom att jämföra svaren som vi fick med det valdateoretiska ramverk som vi använt oss av i studien och även med tidigare forskning inom ämnet. Vigjorde även observationer hos dessa fyra butiker.Slutsatsen som dragits av undersökningen är att mindre butiker överlever på marknaden genom att haen god service och lojala kunder. Det är dessutom inte lönt för mindre butiker att starta en e-handel dådet resulterar i mer jobb och kostnader. / The e-commerce is growing every year and the opportunities to purchase products such as clotheshave never been easier than it is today. For the physical stores it is now important to use theircompetitive tools, marketing strategies, trading environment in the right way to survive the expand ofe-commerce. Their focus needs to be on how to conquer their market as a store and to not get outconquered by the e-commerce. The purpose of this study is while the e-commerce is expanding andtaking over more market shares how does the physical stores react and what kind of competitive toolscan they use to keep the sales up and going without an online store.We used a qualitative research method to answer that question. We conducted interviews with fourowners of shops that does not have an online store, and analyzed the answers by comparing them toour chosen theoretical framework and previous studies. We also made observations at these fourstores.The conclusion drawn from the survey is that smaller stores survive in the market by having goodservice and loyal customers. Furthermore, it is not worthwhile for smaller stores to start an ecommerceas this results in more jobs and costs.