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Retail Market Concentration in Republic of Croatia

Author

Listed:
  • Marijan Karic

    (Ekonomski fakultet u Osijeku, Hrvatska)

  • Ivan Kristek

    (Ekonomski fakultet u Osijeku, Hrvatska)

Abstract

Market concentration has two forms, concentration of the supplier, and it refers to the level of the offer controlled by the vendor and concentration of customers, which is relative to the level of purchase controlled by the buyer. The number and size distribution of sellers and buyers (market concentration) has a strategic importance in determining consumer satisfaction and enterprise competitiveness. Crucial task of the changing process in a transitional country is to enable efficient functioning of the economic system and to achieve competitiveness in the world market. Process of free market development resulted in large number of small suppliers, relatively cost-inefficient, primarily because of their failure to exploit economies of scale.In Republic of Croatia trade is facing major challenges, such as stronger competition, concentration in the local market and take-overs, introduction of new technology, new forms of retail trade, e-commerce and globalization. Total share of large enterprises in retail trade is increasing, and as a result we have reduction in the total number of small retail companies which is leading to the growth of concentration. We intend to analyze the market concentration problems in Republic of Croatia in the period of eight years. We will compare the retail market concentration in Central Europe with a market concentration in Republic of Croatia and the consequences that this concentration has on the national economy in a globalized world.

Suggested Citation

  • Marijan Karic & Ivan Kristek, 2009. "Retail Market Concentration in Republic of Croatia," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 9, pages 97-105.
    • Handle: RePEc:osi:bulimm:v:9:y:2009:p:97-105
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