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1. MARKET STRUCTURE
The market in which Tesco operates is supermarkets. Although this is a highly competitive one Tesco holds a disproportionate amount of power. The figures below indicate that Tesco holds over a third of the market share, and even double the amount of Asda's market share, the second leading supermarket. Market share is ‘the percentage or proportion of the total available market or market segment that is being serviced by a company' (Wikipedia 2006).
SUPERMARKET SHARE
Tesco: 30.6%
Asda: 16.6%
Sainsbury's: 16.3%
Morrison's: 11.1%
Somerfield: 5.4
Waitrose: 3.7%
Iceland: 1.8%

(Source TNS cited by BBC 2006)

Therefore it may give a more accurate picture in saying that the market structure in Tesco's case is oligopoly meaning there is a ‘small number of large producers' (Britton et al 2005, p221) whereas a perfect competitive market would mean that it would be characterised as being price takers dependant upon supply and demand. Tesco is the market......

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Approximate Word Count: 1206
Approximate Pages: 5 (250 words per double-spaced page)

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