Question

how do large companies manipulate the market explain 5 marks

Answer 1

As they say, large companies have deep pockets; so, the large companies primarily use their financial muscle to control markets. They do so by giving higher commission than others to distributors and retailers, splurge on advertising, ensure their products occupy the most visible shelf-space in shops and marts and so on. With their higher production capacity, they flood the market with their products and then suddenly drop the price or give gifts with their products. Besides the financial aspect that goes into determining pricing, discounts, freebies etc., the larger companies use their bigger and well-networked distribution channels in the faster and more efficient distribution of their products.