PRICING COMPETETION IN BRITISH RETAIL SECTOR

Pricing Competition in British Retail Sector

Abstract

This paper examines the impact of the Competition on the competitiveness of the UK food retail sector particularly ASDA and Tesco Plc. Although the report found little evidence of monopolistic behaviour, the findings indicated both significance of buyer concentration and need for voluntary regulation. Recent developments are examined along with current research perspectives. This evidence suggests that not only will buyer power continue to concentrate in the hands of the major retail players but also further concentration and consolidation in the food retail sector will continue to take place. The implications of these developments on the food supply chain are considered in regard to areas for immediate future concern.

Table of Content

CHAPTER ONE4

INTRODUCTION4

The Purpose of the Study4

Background - An Overview of Tesco Plc Inc4

Introduction4

Tesco Plc Expansion Strategy6

Tesco Plc SWOT analysis7

Financial highlights10

Balance Sheet Analysis10

Revenue Analysis14

CHAPTER TWO18

LITERATURE REVIEW18

Competitive advantage18

Technology18

Its brand18

Knowledge of Business & Competition19

Customer Satisfaction19

Strong financial capabilities19

ASDA in the Middle East19

WILL ASDA -TSC FIT?20

Operational Fit24

Purchase from suppliers24

Rivalry among existing ASDA and Tesco Plc27

Price competition28

Retailers and pricing29

Retailer power30

Retail pricing strategy31

Store branding as a pricing vehicle33

Store branding strategy33

Price tiers35

CHAPTER THREE43

METHODOLOGY43

Methodology and data44

Correlation analysis46

Limitations49

CHAPTER FOUR51

DISCUSSION AND ANALYSIS51

CHAPTER FIVE61

CONCLUSION61

Implications for retailers63

Future directions for the retail environment71

REFERENCES77

Chapter One

Introduction

 

The Purpose of the Study

In times of disturbance in the retail business and saturation of house markets, retailers have been looking to complicated internationally. Many British retailers have established incident in some countries. While some retailers have been highly flourishing, other ones have faced failures.

 

Background - An Overview of Tesco Plc Inc

Today, worldwide trading is not an choice but a necessity. As a outcome, there are numerous schools of considered as to the necessity of tailoring trading programmes for foreign markets. Some believe that household and worldwide trading are completely are against, needing absolutely customised schemes, while, at the other end of the spectrum, it could be contended that there is no large distinction between the two, as they are overridden by much bigger, less-controllable components (Perry, 1990).

To insert the argument, it is significant to gaze at the two spectacularly resisting views. First, Kotler (1988) supportive internationalisation assertions that “a business going overseas should study each foreign market mindfully, become perceptive to its economics, government and heritage, and make some adaptations in its goods and communications to match foreign tastes”. However, Jain (1989), opposing to this, asserted that “it has been contended that the worldwide marketplace has become so homogenised that multinational companies can market normalised goods and services all over the world, by equal schemes with resultant smaller charges and higher margins”.

First, internationalisation is supportive a customised trading programme. According to this outlook, as persons round the world become better educated, their flavours diverge. As a outcome, it becomes essential to have a customised trading events, in alignment to apply to differing preferences over countries. Therefore, comprehending and heeding heritage variables are one of the most important facets of being thriving in any worldwide enterprise venture. A need of familiarity with the enterprise practices, communal culture and ...