Economic Concentration and Customer‐Supplier Relations

The structure of organisational markets has been altering quite rapidly in recent years. This paper describes some of the changes which have occurred and considers their implications for firms supplying and buying in these markets. Comment is also passed on changes in a number of other factors observable in organisational markets and their influence on marketing strategies is also considered. In British manufacturing industry as a whole the share of the one hundred largest establishments (measured by net output) had risen from 22% in 1949 to 41% by 1970. Examination of individual sectors of manufacturing shows a similar picture in almost every sector and the data for non‐manufacturing industry also shows increased concentration. In the retail grocery trade for example, it is estimated that in 1976 the head offices of 6 multiple chains accounted for 33% of total grocery turnover, while in 1950 all the multiples (10 stores or more) together only accounted for 20%.