"Tesco is too powerful and a threat to competition in the UK market"
2007-03-04 23:59:55 · 5 answers · asked by josieyuen04 2 in News & Events ➔ Current Events
I'm a happy capitalist, and while I feel a business should be allowed to expand more if their business method is better than that of their competition, I agree with the statement.
Tesco is good for the consumer in terms of prices, but with their immense buying power, few other retailers can compete with them. As far as competition goes, the only way a smaller retailer can compete is on service, quality and location - and many consumers who shop at Tesco care little for quality. Service is still up for grabs, and a smaller retailer often beats Tesco's checkout robots, but location is possibly the only reason smaller retailers can carry on trading. Convenience is very important.
The buying power problem also knocks onto causing problems for their suppliers - with little choice of who to sell their products to, many suppliers have to agree to the often pitiful prices Tesco and other supermarkets pay. Dairy farmers, for example, have seen their businesses near-ruined by this.
Sooner or later, Tesco will be in a genuine monopoly suitation, and it may face problems then.
2007-03-05 00:15:42 · answer #1 · answered by Neilos 3 · 0⤊ 0⤋
Tesco is like Wal Mart is in America. At some point it will be able to control the wholesale prices and can affect people negatively such as farmers and small suppliers. Tesco could set a price for milk that is well below the cost of production for farmers and they would be ravaged by that but have to sell if there is no other large market. Capitalism is great and causes technical advances and can get consumer goods out to large numbers of people but there is greed built into that system, necessarily, and sooner or later a board will make ruthless decisions and needs to be curbed by government controls. If Tesco is massive at that point their access to government power may exceed that of the consumer. Tesco should be allowed to grow but government needs to be aware of the dangers. Consumers will buy at low prices no matter what damage it does to their own communities, Wal Mart in the US has proven that, people will shop the lower price.
And also, its interesting to note that someone would answer a question by stating that they do not live in the UK. Great answer but maybe it would have been better to not answer and go on to a question to which you can answer. Or perhaps you were stating that because you were unsure yourself.
2007-03-05 09:23:21 · answer #2 · answered by Tom W 6 · 1⤊ 0⤋
That's very bad..... I think that its not good and should not be a competition. That's all I can give..... I do not know what is Tesco.... Sorry for that. :)
2007-03-05 08:09:58 · answer #3 · answered by Khamirul Bin Mataree 5 · 0⤊ 2⤋
tesco is great and worse supermarket
2007-03-05 09:20:05 · answer #4 · answered by SWEETIE 1 · 0⤊ 0⤋
I don't live in UK.
2007-03-05 08:07:38 · answer #5 · answered by Anonymous · 0⤊ 2⤋