Effects of technological progress on vertical product differentiation and welfare

Bauner, Christoph; Lavoie, Nathalie; Rojas, Christian

doi:10.1093/erae/jbw012

Cited by 5 publications

(1 citation statement)

References 51 publications

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“…nanotechnology and biotechnology) [ 18 , 108 , 167 , 209 ]; technological innovations in transportation and storage (e.g. just-in-time transportation technologies, cold chain technology) [ 132 ]; improvements in communication technology [ 91 , 108 ]; Big Data platform technologies (especially with regard to targeted and integrated marketing) [ 201 , 266 ]; and food production-related technological innovations, such as those that increase and standardise commodity production [ 33 , 267 ].…”

Section: Discussionmentioning

confidence: 99%

Market strategies used by processed food manufacturers to increase and consolidate their power: a systematic review and document analysis

et al. 2021

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Background The public health community has become increasingly critical of the role that powerful corporations play in driving unhealthy diets, one of the leading contributors to the global burden of disease. While a substantial amount of work has examined the political strategies used by dominant processed food manufacturers that undermine public health, less attention has been paid to their use of market strategies to build and consolidate power. In this light, this paper aimed to systematically review and synthesise the market strategies deployed by dominant processed food manufacturers to increase and consolidate their power. Methods A systematic review and document analysis of public health, business, legal and media content databases (Scopus, Medline, ABI Inform, Business Source Complete, Thomas Reuters Westlaw, Lexis Advance, Factiva, NewsBank), and grey literature were conducted. Data extracted were analysed thematically using an approach informed by Porter’s ‘Five Forces’ framework. Results 213 documents met inclusion criteria. The market strategies (n=21) and related practices of dominant processed food manufacturers identified in the documents were categorised into a typological framework consisting of six interconnected strategic objectives: i) reduce intense competition with equivalent sized rivals and maintaining dominance over smaller rivals; ii) raise barriers to market entry by new competitors; iii) counter the threat of market disruptors and drive dietary displacement in favour of their products; iv) increase firm buyer power over suppliers; v) increase firm seller power over retailers and distributors; and vi) leverage informational power asymmetries in relations with consumers. Conclusions The typological framework is well-placed to inform general and jurisdiction-specific market strategy analyses of dominant processed food manufacturers, and has the potential to assist in identifying countervailing public policies, such as those related to merger control, unfair trading practices, and public procurement, that could be used to address market-power imbalances as part of efforts to improve population diets.

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