TESCO
TESCO is a public limited company. It is a retailing industry. It founded in year 1919 at Hackney, London and England. TESCO also have many products such as Supermarket, Hypermarket and Superstore. There are many retail shops in the TESCO. Example such as Giraffe Restaurants, Harris and Hoole, Dobbies Garden Centres, TESCO Metro, TESCO Extra, TESCO Express and One Stop. It classify in different type of stores. These retail stores also classify in different type of market structure such as Perfect Competitive Market, Monopoly, Monopolistic Competition and Oligopoly.
There are many different type of retail stores in the market. Example of the stores are department stores, discount stores, supermarkets, convenience stores, specialty stores and …show more content…
In a perfect competitive market conditions, inefficient and low productivity producers will be forced out of the market in a number of competing producers, the high productivity producers will continue to exist. Thus, the market may encourage producers to give their own enthusiasm and initiative, run higher production rates. For example, there are Hovis brand and TESCO brand bread that sold in the market. Hovis have 12000 stock, TESCO have 30000 stock, there are many customers buy their products. Product for the Hovis will be not enough stock and will be forced out of the market. TESCO have a lot of stock to produce to customers so can continue to exist in the market. Next advantages is merchants can gain more customers without spending valuable time in searching for them. Price is usually equal to marginal cost also the advantages of the perfect competitive market. For example, TESCO use RM500 to buy 125 unit stores, then it sells to the customers RM4.10 per unit. It will gain RM512.50, the price he sells is close to the marginal cost of the stores. Another advantage of perfect competitive market is that consumer can get standardized product at any place. For example, Ken live in city H and he want to requires TESCO brand toothpaste that he buy in TESCO at city J, but he can buy it in TESCO at city H because the quality of product will remain same whether consumer purchase it from city H or city
There are many different type of retail stores in the market. Example of the stores are department stores, discount stores, supermarkets, convenience stores, specialty stores and …show more content…
In a perfect competitive market conditions, inefficient and low productivity producers will be forced out of the market in a number of competing producers, the high productivity producers will continue to exist. Thus, the market may encourage producers to give their own enthusiasm and initiative, run higher production rates. For example, there are Hovis brand and TESCO brand bread that sold in the market. Hovis have 12000 stock, TESCO have 30000 stock, there are many customers buy their products. Product for the Hovis will be not enough stock and will be forced out of the market. TESCO have a lot of stock to produce to customers so can continue to exist in the market. Next advantages is merchants can gain more customers without spending valuable time in searching for them. Price is usually equal to marginal cost also the advantages of the perfect competitive market. For example, TESCO use RM500 to buy 125 unit stores, then it sells to the customers RM4.10 per unit. It will gain RM512.50, the price he sells is close to the marginal cost of the stores. Another advantage of perfect competitive market is that consumer can get standardized product at any place. For example, Ken live in city H and he want to requires TESCO brand toothpaste that he buy in TESCO at city J, but he can buy it in TESCO at city H because the quality of product will remain same whether consumer purchase it from city H or city