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  • Essay / Tesco Strategic Analysis

    Table of ContentsInductionMain BodyIn ConclusionInductionToday is a period of strategic success. If companies want to ensure their long-term survival and development in a competitive and rapidly changing social and economic environment, they must examine every step taken by the company from a strategic point of view. The key factors of development are to formulate clear development strategies to promote the further development of enterprises and improve their competitiveness in the industry. Tesco is a leader in the UK retail industry and one of the three largest retailers in the world. It was founded in 1924 by Jack Cohen's first store in North London, England. Besides the UK, Tesco also operates in 13 other countries. Below I will analyze its competitive strategy and expansion strategy. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Main body Firstly, analysis of Tesco's competitive strategy. Competitor Analysis: Both Wal-Mart and Carrefour have adopted a cost leadership strategy. It has the advantages of economies of scale, know-how, preferential raw material procurement prices, lower transaction costs and management fees. Competitive strategic choices: Tesco's business philosophy is people-oriented. “Our success is inseparable from customer support and employee efforts.” Tesco's core philosophy is to create value for customers and earn their lifelong trust. Tesco uses differentiated warfare, such as store mode (Tesco has developed a range of store models to meet the diverse needs of different customers – Tesco Express, Tesco Metropolitan Stores in Main Commercial Street and Downtown, Tesco Supermarkets and Tesco Supermarkets.) , localization (development in partnership with local retailers such as relationship building, cost reduction or sourcing centers in many countries provide affordable and affordable products to customers around the world at lower cost or Tesco created its own warehouse, fresh distribution center and hires locals) and uses information management systems to segment the market and provide better services. Firstly, good at database marketing (division of categories of customer groups, product placement), secondly, innovative retail services (Tesco.com, "Tesco Bank", "Tesco Communications", delivery service in line) thirdly, the Club card is a loyalty program. Consumer checks ( 1% of the consumption amount, each time Tesco will replace customers' accumulated bonuses with "consumer checks" and send them to the consumer's home. niche clubs", producing different versions of "consumer magazines club cards", publishing the most attractive promotional information and other topics relevant to them. Some local Tesco chains even organized various events locally for members of different clubs.). In addition, there is a need for effective cost control because Tesco has to maintain a club with 10 million members, and it is cash reward as the main reward method, and also offers tailor-made promotions for different members of the "niche club" Daily management and management. marketing communication are very complicated For example, direct mail instead of television advertisements First of all, Tesco almost never uses mass media such as television to promote "club cards". Thanks to.