Nalyse the market for Tesco Groceries within the UK
The essay needs to answer the following questions in the two sections:
Section 1:What exactly is the product you are focusing on?
What is the geographical location of the market you are looking at?
Are there any special characteristics of the product that gives its market special features e.g is it like a homogeneous primary commodity, is it a differentiated product like a branded consumer good, are there any quality issues like with some financial products
What kind of information do you have on this market i.e what are the key facts that you intend to explain? (Please include graphs and charts for this question and state the source)
What are the supply conditions in this market?
Are there many producers or just a few…is it perfect competition, monopoly, monopolistic competition or oligopoly….and what does this imply for understanding the way in which rival suppliers interact?
Is there aggressive price competition or do competitors seek to preserve fat margins?
Are there barriers to entry in this market: patents, brands ( Tesco has Tesco value products(budget range) and Tesco Finest products (luxury range), economies of scale costs of start ups for other companies, very expensive to setup supermakrt
Is there any goverment role in the market through perhaps regulation (concern Tesco is getting too big), protection or government production?
Richard Lipsey, Alec Chrystal (2003)