A firm's market share is its proportion of the total sales in the market where its product is sold. This can be measured either by the firm's share of total revenue or its share of the total quantity of goods sold within that market.

Market Share

Founded by Jack Cohen in 1929, Tesco grew from a London street trading background to become the UK's leading food retailer. By the early 21st century, it commanded a 25% market share in the UK and was ranked as the third-largest retailer in the world.

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Jack Cohen, the founder of Tesco, started his career in 1919 as a market trader in London's East End, where he famously used his cap-throwing technique to secure the best stall, or 'pitch'. His business philosophy was encapsulated in the motto, ‘Pile it high and sell it cheap’. In 1929, he founded his first Tesco grocery store, marking his formal entry into the retail sector.

Jack Cohen, Founder of Tesco

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

CORE Econ - The Economy 2.0: Microeconomics

Tesco

Around 1919, market traders in London's East End would compete in a daily race to secure the best stall locations, referred to as 'pitches'. Jack Cohen, who would later found Tesco, excelled in this environment by throwing his cap to claim his desired spot, illustrating a form of non-price competition for a strategic advantage.

Competitive Stall Pitching in London's East End Markets

A business strategy aimed at maximizing total profit by setting low prices. While the profit margin on each individual item sold is small, the low price is intended to attract a large number of customers, thereby generating a high volume of sales and substantial overall profit.

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