Management Economics: Tesco's Market Structure and Government Intervention

MANAGEMENT
ECONOMICS

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Presenting the company and its product......................................................................................3
Analyzing the market it has been operating since its inception..................................................4
Market structure in which company operates and the characteristics of the previous market
structure.......................................................................................................................................5
Nature of industry in which company operates...........................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management economics mainly deals with the application of all the economic tools and
methodologies in order to solve many problem in a business so that manager take a better
decision and also act as a link between practice and theory. In the same way, current study will
also help to understand the importance of economic and the chose firm for this report is Tesco
and its product line is baby product. Report will describe the company and its product, further
analyse the market in which it has been operating. Also study will describe whether the company
operate in different market structure in its history and then describe some government
intervention as well.
MAIN BODY
Presenting the company and its product
Tesco Plc is consider one of the top British Retail firm in UK and due to its best quality
of the product and services, company sustain the brand image at international level. As per the
revenue generated by the company, it is known as ninth largest retailer firm in the world and
third largest retailer firm as per the gross revenue. Tesco was founded in 1919 by Jack Cohen
and currently the company occupy the market share up to 28% in all over the world. In 90s, the
company operating in 11 countries but till now, it is operating in 30 more different countries
which clearly shows that Tesco has a brand image at international level and that is why, the
company is still looking to establish in emerging market as well.
Product:Tesco is offering range of products in its different stores such that Tesco Extra
shops offer extra product as compared to superstore. Such that it is deal with the different variety
of products i.e. baby product lines, women wear, men wear and eatables, furniture, home
decorators. Recently the company is indulge into financial market which shows its
diversification strategy. In addition to this, Tesco open its new store such that Tesco Express
where customer collect all food item as per their convenience. Also, the company’s supply chain
and its network is wide such that it clearly shows that there are range of product in which
company is dealing in order to make sure that it provide high quality of product with low and
minimum range.
History:The brand was first appeared in 1924 with a label of his owner name Tesco.
After experimenting with his first permanent indoor market stall in November 1930, Jack open