Tesco Problems Essay

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Course Work 2 Tesco Tesco is one of the biggest grocery retailors in the world, it is one of the top five stores, it was founded in early nineties in UK, and now it is well known company around the global and very famous because of their successful strategies in marketing and how they manage any problem that they are facing. However, in recent day Tesco are facing some problems that may threat their career life, and make them loose their market position. This report will cover these problems, how the competitors are doing to take Tesco’s place, and what Tesco are doing to overcome these problems. Firstly, the biggest problem was the miss calculation of their profit. Tesco said that their profit was 1.1 billion GBP but, the truth was that …show more content…

This is one of the biggest mistakes that Tesco did because with no experience managers, it will be so difficult for them that they can handle the sales or solving any problem that they may face, it is like telling an English teacher that he should make a medical surgery. Also, Dave Lewis the CEO of Tesco made some mistakes that threating Tesco’s profit to reach zero because of his strategy, he wanted to make some improvement in the company to attract more customers but, rather than reaching his goal, he ended up lowering the general profit of the company. He made some decisions like cutting the prices as a marketing strategy, he made new contracts with suppliers which will cost more because daily suppliers substitute is expensive, and final decision was hire more employees in the store. His strategy cost Tesco to spend most of their profit, while loosing profit will make the company price go down (Ruddick …show more content…

After the mistake that Tesco did, they begin to loose their market share so, the competitors were trying to gain what Tesco was loosing, and they did. For example, Lidl had increased 10 percent in their sales, which is a big threat for Tesco because other companies are taking Tesco’s place in the market. In United States and Australia there are some stores that it sell very cheap products without looking at their quality. This was very tough for Tesco to handle because they cannot compete with this amount of discounts. In the same time, Tesco are trying to return to its position as before but, their competitors are using Tesco’s falling into their benefit by expanding more and making offers so they can get higher market share. For example Sainsbury, Asda, and Morrisons are investing more while expanding as well to take Tesco’s position and prevent Tesco from coming back as they were

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