Under the European Union the members can travel and trade freely without any constraints as long as the members are trading in euro (the single European currency). Market structure is a classification system for the key traits of a market. Monopoly: In the United States, Texas could not avoid a recession in the wake of the 1986 oil price fall, whereas demand for Sterling changed in the light of the new oil price, adjusting the exchange rate downwards. From my understanding there are many possible reasons that the government should consider while joining Euro, joining Euro would reduced exchange rate uncertainty for UK businesses and lower exchange rate transactions costs for both businesses and tourists. But, in economics, market is used in a wide perspective. 2008. A market structure is a tool used to determine the pricing power of certain products in diverse firms. Tesco is one of the largest commercial and grocery store chains in the world, while the Tesco online market share is the largest when we regard the European market.Not only is Tesco marketing strategy and business model very successful in terms of selling its products but it's also known to be extremely unique and professional in its ways of handling business and . A good and most current example of a monopoly is the Apple Company which has created the iPhone, because of the degree of the monopoly there is a high possibility of price discrimination where the customers and the consumers have their choices limited to what is available in the market. from 14.0 billion to 15.4 billion, hence the UK economy is dependent on the import of essential raw and prepared materials; today the service sector is more and more important to the UK economy as a result of the weakening of the manufacturing sector now imports are crucial and that is why using the international market the UK economy is on the growth as the export data depicts that UKs export is increasing from 8.2 billion to 10.9 billion. A single currency would help that transaction pass smoothly. with free plagiarism report. We'll send you the first draft for approval by. There are four basic types of market structure: perfect competition, imperfect competition, oligopoly, and monopoly. Market structure decides the interaction of buyers with the producers. In 2007 Tesco received the Top online green award for their zero-emission delivery vans. The chosen organization for this study is Tesco Plc that operates in the retail industry of UK. In such type of competition most of the companies use Push strategy, i.e. cite it. The Commission can, does and has fined companies for all these practices. To make these things happen, EU countries have set up bodies to run the European Union and adopt its legislation. This work is done using the powers granted to the OFT under consumer and competition legislation. These companies surpassed the revenues generated by Tesco Plc. In the UK, the five big supermarkets totally have 3/4th of the market . Value of European markets to UK Market Collapse: Tesco has stores in different countries but still it is completely depending on the UK market. Thus, the supermarket industry in the UK could be described as an Oligopoly Market. - All firms are price takers - All firms have a relatively small market share - Buyers know the nature of the product being sold and the prices charged by each firm. The chosen organization for this study is Tesco Plc that operates in the retail industry of UK. Impact of European Unions Competition policy on Tesco It works in the United States because the labour market is mobile, helped by the common language and portability of pensions etc. (https://www.uktradeinfo.com/index.cfm?task=euearlypub). Climate change is one of the gravest challenges facing humanity. In this type of competition the industry has a small numbers of large dominant firms that have a firm control over the market. The business that I have chosen for this assignment is Tesco; this is because Tesco is a multibillion pound international business. The European Union is currently active in a wide variety of policies from 'human rights' to 'transport and trade'; below is the list of some of the policy areas of the European Union. What is Tescos market structure? Retrieved from https://phdessay.com/market-structures-tesco/, Hire skilled expert and get original paper in 3+ hours, Run a free check or have your essay done for you, Didn`t find the right sample? Tesco itself argues that it is an oligopoly, which suggests that they are also not flawed in the perfect rivalry category of the market structure. Advantages: A single currency should end currency instability in the participating countries (by irrevocably fixing exchange rates) and reduce it outside them. The Commission may agree to a company having a monopoly in special circumstances - for example where costly infrastructure is involved ('natural monopolies') or where it is important to guarantee a public service. Some of the basic aims of the European Union are peace, prosperity and freedom for its 498 million citizens in a fairer, safer world. This penalty to the British Airways has been the highest ever imposed by the OFT for violation of competition law and this demonstrates the determination of the OFT to deal strongly with anti-competitive behaviour. Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems. It is estimated the 3.5 million British jobs are dependent on* Britains membership of the EU. In oligopoly there are many entry and exit barriers such as huge investments etc. Oligopoly: European Union is a unique economic and political society which is in partnership between 27 democratic European countries. Market structure influences the behavior of firms to a great extent. It was estimated that a traveller visiting all twelve member states of the (then) EC would lose 40% of the value of his money in transaction charges alone. In a recent investigation by the OFT has reviled that British Airways has been found guilty over the price of 'long-haul passenger fuel surcharges' and has paid a penalty of 121.5m to be imposed by the OFT, therefore enabling the OFT to close its civil investigation and resolve this case. "A 'competition test' to curb the power of the supermarkets was unveiled by the Competition Commission last year as part of a planning shake-up designed to boost competition in the multi-billion pound grocery market. In this type of industry firms usually follows pull strategy and make huge efforts in marketing and advertising to attract its target customers, the products in the industry could be highly differentiated or even be similar but hard of getting a hold and this is why businesses use branding or homogenous. Market structures are basically the number of firms in the market that produce identical goods and services. In June 2010 the total value of trade-in-goods imported to the UK from countries outside the EU was 15.4 billion. International business traffic is an important feature of the UK economys survival; almost 50% of UKs export is in the Non European Union zone, there fore international market has a vital role to play in UKs economy. Any citation style (APA, MLA, Chicago/Turabian, Harvard). The European Commission has wide powers to make sure businesses and governments stick to EU rules on fair competition. The loss of national sovereignty is the most often mentioned reason for the UK not joining the monetary union is the transfer of money and financial proficiency from national to community level would mean that economically strong and stable countries would have to co-operate in the field of economic policy with other weaker countries. To Types of Market Structure . Did you know that we have over 70,000 essays on 3,000 topics in our A perfect competition market is a structure that contains many different companies, which means that each company individually only has a small amount of influence over the entire market. Some exceptions to the general rules are possible. Market structure is said to be the characteristics of the market. Businesses regularly have to make appeals against Commission decisions if it seems like a unfair deal. A competition test to curb the power of the supermarkets was unveiled by the Competition Commission last year as part of a planning shake-up designed to boost competition in the multi-billion pound grocery market. Market Structure Pricing and Output Decision. aviation all airlines prove one service which is to get their customers from one location to their destination and most customers have no preference or specific type of airline that they want to travel with, most customers will just look for the cheapest airline. Waitrose is another . In a recent investigation by the OFT has reviled that British Airways has been found guilty over the price of long-haul passenger fuel surcharges and has paid a penalty of 121.5m to be imposed by the OFT, therefore enabling the OFT to close its civil investigation and resolve this case. The objective of this report is to analyze on the market structure of the retail industry in the UK. It operates stores in various formats differentiated by size and range of products sold, including large, small, dotcom only and one-stop. Sainsbury which owns 16.3% of the UK supermarket shares and Morrisons which owns 11.5%, this means the entry barriers to entry are very high because the industry is dominated by small number of large firms which control and own that share market. The UK is growing reasonably well, Germany is having problems. Once in a lifetime a family might make one large purchase or transaction across a European border such as buying a holiday home or a piece of furniture. Noise, swimming water, rare species and emergency response -these are just some of the areas covered under the extensive body of environmental legislation that the EU has established over the decades. Kudler Fine Foods is an organization that offers gourmet foods and wines to the San Diego Metropolitan area. By Sarah Vizard 10 Sep 2014. Being in the Top 50 retailers globally as of 2021, Tesco's annual revenue worldwide in 2020 was 58.09B, a 9.1% decline from 2019 (due to the Pandemic & disposing of its Asia operations, to focus on the core business in Europe). Get Your Custom Essay on. The Commission's extensive powers to investigate and halt violations of European Union competition rules are subject to legal review by the European Court of Justice. Oligopoly is one kind of market structure (Anderton. 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