Tesco: Everyday Low-Price Guarantee Strategy

Abstract

The UK retail grocery market is widely recognized as being oligopolistic. The retailers often advertise that they will not be undersold. Some firms promise to match any lower price offered by a competitor on the same item (price-matching guarantee), while others promise to beat any competitor’s lower price on the same item by some percentage of the difference (price-beating guarantee). One of the most interesting examples about using low-price guarantee strategy in oligopoly is Tesco, the supermarket with the largest market share in UK. In this paper, we will try to answer several questions, namely: Does Tesco use this pricing strategy to meet or beat a competitor’s price? Why does Tesco success by using low-price guarantee? And can Tesco avoid cutting price war? Also, another interesting point is that while Tesco’s performance in UK is excellent, its new business strategy is to enter US retailing market and to challenge Wal-mart, the top1 US retailer. Wal-Mart can even undercut supermarket prices by as much as 20 percent but is still able to generate considerable profit because of its enormous volume and huge buying power. It is very interesting to research why Tesco decided to compete in such a high competitive market.

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A. Pendahuluan

Hubungan antar negara menyangkut berbagai aspek dalam kehidupan. Termasuk dengan berkembangnya diberbagai bidang kehidupan, namun dalam perkembangannya hampir setiap bidang mempunyai nuansa internasional dan disentuh oleh hukum internasional. Kemudian dengan perkembangan tersebut akan menentukan kebijaksanaan yang akan dibuat. Salah satunya kebijaksanaan dari negara-negara baru, dan juga dinyatakan mengikat terhadap wilayah-wilayah jajahan negara lain. Sehingga hal tersebutlah yang akan menentukan hubungan hukum dan akibat hukum untuk hubungan internasional kedepannya.