Environment Analysis
Strengths
1. Self-owned high quality hypermarket space
To challenge the traditional way that choosing Leasehold sites for hypermarkets , from 2008 TESCO made a decision to buy land in China for building shopping mall-LifeSpace (TESCO China property strategy,2010) and this action enabled Tesco to secure high quality hypermarket space and provide customers with a high level of shopping environment and good location. LifeSpace shopping malls are considered as an advantage to Tesco to compete with its rivals Walmart and Carrefour in Chinese Market (The Telegraph, 2010).
TESCO China property strategy indicated that in many Tier 2 & 3 cities suitable malls for leasehold hypermarket doesn’t exist (TESCO China property strategy, 2010), meanwhile, Tesco feels that some of the sites are the wrong shape and have no parking, therefore TESCO deals with the problem by building its own malls (The Telegraph,2009). According to Tesco official Chinese website (Cn.tesco.com, 2014), by 2012, seven LIFESPACE shopping malls owned by TESCO have been developed in China.
2. Self-owned brand product
TESCO has its own brands which are “Value” and “Tesco Le Gou” in China, and the range of products is in variety and substantial. TESCO’s own brand products offer good quality and lower price to the customers. According to Tesco official Chinese website (Cn.tesco.com,2014), comparing with the same quality products of other brands, TESCO’s own brand products offers competitive price which is lowered by up to 20%.
3. Venture with Leading Chinese Grocery ChainAfter nine years efforts in cracking China market, Tesco chooses to form a partnership with China Resources Enterprise (CRE), the largest grocery retailer in China, for a s...
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...Thus, it’s a significant and strategic step to set up small and medium sized shops in the second and third tier cities.
A further reason why should focus on second and third tier cities of south-east part China is the rapid growth and penetration of Internet which would bring a booming development to the e-commerce implication in these market. Since TESCO has been successfully implement the on-line shop system in UK, it got technology advanced in this part.
Due to the lack of local unique operation experience and the cultural difference between each regions, the incremental entry strategy may be preferred as the company still need time to gather further information, familiar with the working process and reduce the high risk of failure when it first enter into a new market. All these require step by step penetration instead of high cost expanding immediately.
Online Stores Tesco wants go into other markets because they would be bringing in more customers, which are going to increase profit. They also have another aim which is to expand internationally because they already operate within the Europe. They have to set themselves new aims and objectives that are harder to achieve as it’s the expanding further.
Tesco PLC's Expansion in North Bracknell Introduction: Tesco PLC is an international supermarket not only selling high quality goods but has now also become one of the biggest job markets. As well as this Tesco has been running sub-projects to increase the level of customer care. [IMAGE] Tesco's main aims are shown by the steering wheel provided by their website (www.tesco.com). Tesco want to have good quality for value to earn their customers loyalty while still making a profit. I will be investigating the Tesco Superstore, petrol station, pharmacy and coffee shop in North Bracknell (Warfield).
Tesco is a UK based Supermarket Company which was founded in 1919 by Jack Cohen, since then it has grown to become a multinational company which specialises in a lot more than just groceries, this has improved the overall profit of the company. The overall employees recorded at the end of 2015 was 476,000+, this shows that is a source of employment for nearly half a million people in the UK. The supermarkets are no longer just in the UK they also have shops based in Malaysia, India and Poland, this presents that they are increasing the size of business to a multinational company and is also a good source of jobs for people in poorer countries. In the world over 75million people travels
Tesco also has various and wide range of products and that is to meet customers’ needs of whatever customers intend to buy, nearly whatever customer intends to buy would find it underneath one ceiling (at Tesco). On the top of selling groceries Tesco sells others products such as, books, CDs, DVDs to buy, DVDs to rent, games, flowers, electronics, cosmetics, etc.
Tesco is a public limited business and therefore is in the tertiary sector as it provides a service to the public, this means that the business is owned by many shareholders. Tesco sell their shares on the stock exchange and are number one out of its competitors in terms of number of shareholders. Having a high amount of shareholders means that the business needs to make and retain profit levels high so that they trust and gain loyalty to the
The Italian Centre Shop shows many attributes as for how they are able to build on their strengths. This in the end helps a company to expand and grow further to improve their internal performance and as well by gaining more consumers (Kerin, et al., 2015). Firstly, the company’s main strength relies on the location of the different branches, being placed strategically so it is easier to bring in more consumers as well as being easily accessible for people around those areas. Two of the three locations in Edmonton are situated beside shopping centers, Southgate mall and West Edmonton mall, which in the West end is the most popular attraction of the city. The third branch is located in North Edmonton which is known for the heart of “Little Italy”(Spinelli, 2016). Secondly, the Italian Centre Shop sells a variety of merchandise and different cuisine from all around the world, the main place being Italy and others which include: Spain, Romania, Portugal, Ukraine and Poland (Spinelli, 2016). This helps to expand the company’s target market while still keeping
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
Tesco is trying to gain as high profits as they can because company investors or shareholders might thing about investing more money in to the business because of its success and development. Tesco wants to make its investors satisfied because it may affect business future.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
Place: They opened discount factory outlet stores in rural areas and retail stores in urban shopping center. By selling different kind of product in different places help them to meet the different need of the customers. On the other hand, they also sell their product online, where customer can purchase their product at anywhere and anytime. All this make them be able to maximize their gain.
This is the second part of the strategic assignment. In this report the competecies, culture and resource analysis of Tesco is presented. Furthermore in this report SWOT analysis of Tesco is presented and then two strategic options are suggested to Tesco. The strategic options suggested are then evaluated through the SAF model.
Tesco is the largest retailer in UK. It is a public limited company which sells multinational grocery, health and beauty product, household items and toys etc. Since Jack Cohen founded Tesco in London’s East End at 1919 and now it has sprouted branches in 12 countries with over 7,800 stores include franchises. Tesco hire over 530,000 employees and they serve over tens of millions customers per week. Tesco
Tesco’s aspiration for multinational status had proved successful. Just about any country they chose to do business in ultimately made them the world’s third largest retailer. Their niche, however, was in emerging economies and they had entered all the emerging economies of the world that they felt were of importance. Japan for many years had been an interest because it was known to be the second largest retail market in the world. When the two existing supermarket chains went up for sale, Tesco decided it was time for entry into the Japanese retail market. Eight years later Tesco would learn its lessons on the uniqueness of the Japanese culture.
A good location can have a significant impact in attracting potential customers, thus improving sales. Especially in the case of a supermarket, location is more important than other business sector. Customers never drive long distances to only buy daily necessities. Moreover, favorable location gives efficiency to company’s logistics because unnecessary moving cost can be cut down. So, we can say that it is important factor for the successful operation of the supermarket.
Metro Holdings Ltd is a multi-national company that operates two major business segments, namely Property Development and Investment, and Retail. This report explores the retail arm of Metro, which manages three department stores and four specialty “accessorize” stores in Singapore, and another five department stores in Jakarta and Bandung, Indonesia.