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Tenaga Nasional Berhad Case Study

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Part 2: Content and Conclusion Analyse and explains by giving specific and detailed characteristics to prove your selected firms/ companies fit the same market structure. Tenaga Nasional Berhad (TNB) is the big electricity utility and company in Malaysia and the Asia. Today TNB estimated have almost 8.3 million users in Peninsular Malaysia, Sabah and Labuan. TNB has been maintained the electricity supply in Malaysia ever. TNB as the powering national development, professional work included the generation, transmission and distribution of electricity. In Malaysia, TNB supply households and industry by uses electricity generated thermal stations and hydroelectric. It also manages and operates the National Grid which links TNB to the distribution network. The grid is connected to Thailand’s transmission system and Singapore’s transmission system. In East Malaysia, TNB has 80% equity in Sabah Electricity Sdn. Bhd. (SESB). In Malaysia, TNB is the diversification company, it professional include the manufacture of transformers, high voltage switchgears and cables and architectural, civil, electrical engineering works, services, repair and …show more content…

There are 4 characteristics of monopoly and those 4 characteristic are one seller and large number of buyers, product has no close substitute, price maker, and barriers to entry. The publicly listed company, TNB as a Natural monopoly, it a one firm can meet the entire market demand at a lower price as compared to two or more firms. TNB is monopoly the communication and distribution of electricity in Malaysia. TNB is the only company in Malaysia which supplies electricity to households or industry. It remains as the only electricity supplier direct to consumer, because to start such a monopoly business as TNB will require a company to invest a huge amount of capital, but have the monopoly power to control over price and

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