StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Tesco Plc Strategy Analysis - Coursework Example

Cite this document
Summary
Tesco Plc Strategy Analysis (Name) (University) (Course) (Date) (Tutor) Tesco is one of the largest supermarket retail stores in the world, operating around 2,318 stores and employing over 300, 000 people. It is based in the UK but operates stores in the rest of Europe, USA and Asia…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
Tesco Plc Strategy Analysis
Read Text Preview

Extract of sample "Tesco Plc Strategy Analysis"

Download file to see previous pages

It also operates financial institutions as a joint venture with the royal Bank of Scotland (Data Monitor, 2004). Mullins (2010) says that a marketing strategy primarily focuses on effectively allocating and coordinating marketing resources and activities in order to accomplish firm’s objectives within a specific product market (Mullins & Walker, 2010). The critical issue that concerns the scope of a marketing strategy is specifying the target market(s) for a particular product or product line (Mullins & Walker, 2010).

This is followed by the motivation to seek competitive advantage and synergy through a well-integrated program of marketing mix that is custom made to the needs and wants of potential customers in the market segment (Mullins & Walker, 2010). Michael Porter identifies three generic strategies and these include: the cost leadership strategy, the differentiation strategy and the focus strategy (Mullins & Walker, 2010). These strategies are based on strategic scope and strategic strength of a firm.

The strategic scope is used to mean market penetration while strategic strength is used to mean the firm’s sustainable competitive advantage (Mullins & Walker, 2010). Tesco uses the cost leadership strategy in its operation. With this strategy a company aims at becoming the lowest-cost producer in the industry (Stephane, Girod, & Rugman, 2005). It is a strategy that is often associated with large-scale businesses that offer generally standard products that comprise of little differentiation and are perfectly acceptable to majority of the market customers.

This strategy is aimed at gaining market share by cutting costs so that a firm can offer lower prices and in the process gain market share (Stephane, Girod, & Rugman, 2005). High volume is leveraged to create low costs by getting the best prices from suppliers and more efficiently utilizing fixed costs. In order for any company to use this strategy it must be cost conscious in every aspect of the business (Kim, Nam, & Stimpert, 2004). This strategy therefore is characterized by tight budgeting, elimination of waste and thin personnel staffing.

Scholars agree that this strategy is often adopted when there are many providers, growth is flat and providers are trying to steal the market share from each other by lowering prices (Kim, Nam, & Stimpert, 2004). Last year in September Tesco began a new strategy where it began to put its focus on permanent low pricing as opposed to its previous specific price promotions. This was as a result of its losing a great percentage of its market share to its competitors such as Sainsbury, Asda and Wal-Mart (Poulter, 2011).

Market segmentation refers to the process of dividing the total market for a product or service into groups with similar needs such that each group is likely to respond favorably to a specific marketing strategy (McDonald & Dunbar, 2004). There are many variables to which a market can be segmented and these include the following: behavioral, demographic, psychographic and geographic segmentation. Behavioral segmentation is a strategy based on customers’ needs and subsequent reaction to those needs or towards the purchase of intended product or services (McDonald & Dunbar, 2004).

Demographic segmentation considers aspects such as age, gender, education, income, occupation, size of the family etc. psychographic segmentation is all about diving people according to their lifestyles and values and how

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 words”, n.d.)
Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/business/1440675-retail-business
(Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 Words)
Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/business/1440675-retail-business.
“Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/business/1440675-retail-business.
  • Cited: 0 times

CHECK THESE SAMPLES OF Tesco Plc Strategy Analysis

SWOT and PESTLE Analysis of Tesco

Every organization opts for marketing strategies to build their product &… New strategy formulation is needed on the basis of current data analysis of market, advantages & disadvantages of the management, product, services and etc. Taking the case of tesco plc, one of the largest etailers of the world, one can find that the company has more than 2,300 supermarkets & convenience stores and has employee strength of 326,000 people.... The SWOT and PESTAL analysis show that Tesco currently has the resourcing capabilities to introduce the baby wear segment in the market and able to implement a market developing strategy built on the success of its stores in the country....
9 Pages (2250 words) Essay

Strategic Analysis

The strategy analysis and the resulting recommendations are formulated keeping in view the long-term objectives of Tesco PLC and its rivals.... The context of this report is set to understanding the strategic direction adopted by tesco plc in order to achieve competitive advantage over its competitors.... Moreover, the report also covers the strategic aspects of competitive strategy adopted by tesco plc to reduce the… Keeping this in view, the author of the report has used Porter's competitive positioning models and theories have been used in order to formulate the findings in an appropriate manner....
12 Pages (3000 words) Essay

Evaluation of an International Human Resource Strategy

The purpose, aim and subject of this report is basically the evaluation of international human resource strategy of tesco plc within its local jurisdiction and its start up of new joint venture association with another partner in other country, i.... I would… I would be directly and merely responsible and obliged to carry out the entire evaluation and analysis of various HR issues and strategies that has to be watched out and properly Moreover, I would be discussing the entire chunk of international HR strategy into the following five major and broad categories, namely; In addition, I would be stressing out the major issues which the tesco plc representatives and it HR department would have to be catered with when extending and flourishing its activities into another region of world on the basis of contractual relationships with its new appointed joint venture partners....
14 Pages (3500 words) Essay

The Tescos Overall Performance

According to London Stock Exchange, the tesco plc Company, ISIN GB0008847096, represents FTSE sub-sector of Food Retailers and Wholesalers.... That is why it is vital for Here the PESTEL and SWOT analysis as special tools enable the company to represent its strong sides and the fields for improvement and also assist in analyzing the opportunities that different factors give to it.... The analysis of TESCO organizational design requires rethinking of its structure, systems, shared values and style of activities and also its employees and their abilities that would create the best opportunities for TESCO business growth and development....
14 Pages (3500 words) Essay

Tesco International Business Strategy

The following paper, Tesco International Business Strategy,  will discuss the corporate and business strategy of one of the world's largest retailers- Tesco; it will conduct an analysis of different external and internal factors that contribute and influence the performance of the company.... hellip; According to the report since global strategy brought a wide variety of business strategies, a high level of adaptation called for a challenge to the local business environment and here organizations have opened new possibilities for developing a single strategy....
14 Pages (3500 words) Essay

An Analysis of the Impact of External and Internet Environment on Tesco Corporation

This paper provides an analysis of the impact of external and internet environment on Tesco Corporation and evaluates the organization responses.... The paper also throws light over the Corporate Social Responsibility Programme as formulated by strategic planners at tesco Corporation.... tesco trains its workers to believe in the advantage of the green economy or green revolution.... tesco Corporation is A United Kingdom-based grocery store and retail services provider that enjoys global sales of more than 62....
14 Pages (3500 words) Term Paper

Financial Analysis of Tesco Plc

This case study "Financial Analysis of tesco plc" analyzes the performance of the tesco plc using ratio analysis.... he company's performance and Financial analysis is done using ratio analysis.... Ratio analysis is a procedure where an item of financial data is compared with another item of financial data to interpret the relationship between the two so that an understanding can be developed about the information and hence conclusions could be drawn....
8 Pages (2000 words) Case Study

Growth Strategy for Tesco PLC

This work "Growth Strategy for tesco plc" focuses on the Group's retail business.... esco's product offering spans two broad categories: groceries and general merchandise (tesco plc, 2014).... he internal environment of a company refers to the internal factors that affect the operations and the success of the company and over which the company has considerable influence relative to the external factors(tesco plc, 2014).... Tescos corporate strategy is to appeal to all the segments of every market the company operates in....
8 Pages (2000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us