What is the advantages and disadvantages of Tesco being a monopolistic competition structure?
The primary advantage of Tesco on adopting a monopolistic structure is that the barriers to entry are very high, that no other companies can operate in the industry. Although competitors may arise, Tesco is overthrowing them due to its strategies and its firm establishment in the market and in terms of customer loyalty. This leads to the limited number of companies, including Asda and Wal-Mart, to compete with Tesco, thus, is being regarded as the leading retailer store in the United Kingdom. Because of this, Tesco is also becoming more efficient in responding to various performance pressures by preventing slack in inputs. In turn, resource allocation in Tesco becomes more efficient, and focuses on implementing cost-effective strategies that will allow efficient capital allocation. In addition, because of a monopolistic structure, Tesco is able to achieve innovation, which makes their products stand out in the market and eventually overcome threats of rivalry. Due to the wide variety o
