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The food retailer, Tesco, had record growth during a 15-year period. The company went from one of the most significant food retailers in the United Kingdom to the country’s largest retailer overall for all goods. The facts state that one out of every eight of UK money was spent at Tesco. The company used to only sell food but it now sells all kinds of goods. Some of the things that they sell now include refrigerators, freezers, electrical goods, clothing, and furniture. Tesco’s customers are very happy with the low prices that the company is selling the goods for. They believe they are getting good value for a good price. Some of the deals that Tesco offers can not be found at any other retail store. For example, the facts state that a pint of milk is sold the cheaper at Tesco than anywhere else. The situation with this strategy that Tesco is implementing is how these goods are getting sold for cheaper than they are getting made. The cost has to be incurred somewhere in the whole process.
The first alternative for Tesco is to change their business practices and raise its prices on products. The problem with this alternative is first of all there is no evidence to prove they are doing anything wrong. The second alternative would be to continue their current practices and keep their prices low. The problem with this alternative is that allegations are being made and potentially hurting the company’s reputation.