Tesco Case Study

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Tesco Case Study

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Abstract

To understand the essay, it will be useful to consider the environment of the national market. Indeed, it will be helpful to understand why environmental influences are particularly significant in the future of a company and its competitors. So, 'a dynamic PESTE analysis can be done in order to succeed in the new market'. We can retain that Tesco has to take into account the environmental protection laws which are very strict, and also the fact that local authorities that regulate the land usage planning. Then, Tesco has to consider the inflation rate interests and personal disposal income, as these factors directly affect its sales. Furthermore, the lifestyle of the population is an important factor. As the population lifestyle is changing, and more women are employed, there is little time for shoping. Delivery services, and tesco.com offer good solutions to solve the problem of 'poor time/rich money'. The essay discusses about the electronic method of sales, which are increasing day by day. Finally, it is important not to forget the environmental factors which affect a lot Tesco's business. For example, the company uses a lot of energy (fuel, water), and has to spare the cost of energy by recycling the energy.

Tags: Tesco internationalization, Tesco marketing strategy, Tesco marketing strategies, Internationalization of Tesco, Tesco global competitors, Tesco marketing mix

Draw a value chain for Tesco's activities in the UK. What activities did Tesco have to perform well in order to remain competitive in their market place?
1. External analysis
2. Business analysis: Tesco
Use the cultural web concept to map Tesco's organisational culture in 2003. pick key features of the web that your analysis suggest have helped tesco to achieve their success. How has the web changed during terry Leahy's tenure as chief executive? Have these changes contributed to Tesco's success, how,why?
1. The key features that have propelled Tesco to success
2. The Leahy changes
In the context of the UK supermarket environment critically evaluate Porter's model of generic strategy and one other model that discusses market strategy. Is it possible to categorise Tesco's market positioning as following a specific generic strategy, why, why not?
1. Does you analysis suggest any similarities/differences between the market strategies of Ryanair and those of Tesco in the context of the models discussed in part
Were Tesco wise to enter internet retailing, why, why not?

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[...] In the same idea, Tesco wants to continue its expansion in the international markets. Tesco and Ryainair pursue both a market development strategy. Differentiation Ryainair continues its low cost strategy but wants more and more to pursue a strategy of differentiation through additional services (website, car insurance, connecting rail service, travel insurance). Leadership style management Terry Leahy manages Tesco's strategy with a strong personality and launched an aggressive marketing plan to achieve its goal. Concerning Ryainair, O'Leary also is a dynamic chief executive and manages Ryainair with a leadership style. [...]

[...] Appendice 11: The five forces analysis of Tesco's business The threat of entry Tesco is the largest retailer in the UK and the most profitable. Indeed, in 2002, Tesco has 750 stores in the UK and 1023 all around the world. So it is difficult for new entrants to penetrate this strong market. However, we can notice that some foreign companies which try to enter in the market (Wal Mart or Carrefour the French leader). However this menace is limited insofar as there is already a high competition and we can assume a kind of between Tesco and Carrefour which would be not to conquer the market of each other. [...]

[...] There are a lot of acquisitions and Tesco is the dominant player in the UK market. Retailers all have an incredible insatiable appetite for expansion. That's why, the market can rapidly change: “many organisations in both the public and private sector face turbulent, fast changing, uncertain business environment and increased levels of competition. This sort of environment is called hypercompetitivity” (Johnson, and Scholes, 2002). However, the bargaining power of the suppliers and the buyers is very low. Tesco can decide its price and its margins concerning its products. [...]

[...] Tesco also tries to empower managers and ensure that each person has a set of quantifiable objectives. At the end, the communication is very clear, for instance, managers receive a message once a week by e-mail and can reply directly if they have a question. The CEO has a good accessibility to its employees . Technology development Tesco want to improve its IT system in order to improve its logistic and the distribution channel. Tesco spent 200 million to 300 million pounds per year on its logistics systems, mostly on upgrading existing facilities”. [...]

[...] These core competences give Tesco sustainable competitive advantage compared to its competitors and it has to maintain these core competences if it wants to stay a leader in the market a firm has an inimitable resource that allows it an advantage in product value it will gain market share from its competitors” (Wyn jenkins, 2005). In this case, it can be deducted that some of Tesco's core competences can be imitable but the link between them and all the communication to facilitate the link make the system difficult to imitate. [...]

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