Both of these players have over the years become a natural and inorganic method of sourcing for small self-employed retailers. (2006 Cycle) 1.3 Market Power of Coles and Woolworths - Analysis This area investigates the business sector control of Coles and Woolworths in the Australian market industry. Economies of scale: The cost structure of the market sector is one of the critical perspectives that focuses the way the business operates. Retailers usually purchase items from independent manufacturers and wholesalers and retail them to end buyers. Retailers then rely on free wholesalers who process the items for the cost of the items, over which the retailers have no control, combined with settled overheads such as logistics, labor, retail outlet/distribution center rentals, advances, others operational variables. As a result, the opportunity cost for the spending interest point is very limited. The magnitude of the preferred spending point is conceivable when retailers can gain from economies of scale through vertical bundling, i.e. unifying item preparation in a natural way. Substantial market links have the