• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Tesco's business strategy and current market position

Extracts from this document...

Introduction

Tesco current market position Tesco is one of the world's leading international retailers. Since the company first used the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors. The principal activity of the group is food retailing, with over 2,500 stores worldwide. Source: http://www.tescocorporate.com/page.aspx?pointerid=A8E0E60508F94A8DBA909E2ABB5F2CC7 SWOT analysis of Tesco Key target market Tesco's key target market is the public. Its core purpose is to create value for all customers to earn their lifetime loyalty. Their success depends on people, the people who shop with them and the people who work with them. If their customers like what they offer, they are more likely to come back and therefore results in repeat business Main competition Sainsbury was the UK's biggest grocer until 1995, but was recently relegated to third position behind Tesco and Asda. Morrisons is another competitor of Tesco, it is currently struggling to absorb Safeway and in 2004, issued its first profit warning in 37 years, leaving Asda as Tesco's only really credible UK rival. ...read more.

Middle

At peak period, this can lead to disruption for local road users. Tesco's image Tesco has a long term strategy for growth, based on four key parts: growth in the Core UK business, to expand by growing internationally, to be as strong in non-food as in food and to follow customers into new retailing services. Also, Tesco ensures it has broad appeal by continually innovating and investing in new lines to increase choice for their customers. From Value to Finest and lifestyle ranges like Organic, Free From and Healthy Living, their various own brands enable customers to buy products to compliment their lifestyle. Understanding customers is another significant factor for growth, Tesco Clubcard is the UK's most popular loyalty card scheme, with over 13 million active cardholders. Information provided by Clubcard enables them to better understand their customers and say thank you for shopping with them by giving them vouchers based on the amount they spend. ...read more.

Conclusion

- International - Tesco began to expand internationally in 1994, and in the year ending February 2006 its international operations accounted for nearly a quarter of sales. This strategy might affect the business in the coming years, one of the main problems is the diversifications of the company, it may lead to the business out of control. Will the business still be in existence in ten years time? I believe Tesco will still be existence in ten years time. But the growth of the business will slow down. As Tesco's huge growth in this country is a hard act to follow. With the domestic market increasingly saturated, some UK supermarket chains, namely Tesco, Sainsbury and M&S have looked to overseas markets to maintain their positions. This is a whole new ball game, bringing into play competition with large firms from other countries, such as US retailing giant Wal-Mart and French multinational Carrefour. Therefore, Tesco may not be able to competitive to the large and multinational company. ?? ?? ?? ?? Carmen Lao ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. BTEC BUSINESS UNIT 2

    Consequences of ineffective management However! If Coca Cola Enterprises do not meet targets then they will be in trouble not meeting targets will mean that customers will not be happy which then leads to losing customers. If customers are not happy then revenue will go down, as they are unlikely to be shopping with Coca Cola Enterprises again.

  2. Aims and Objectives of Tesco

    By working closely with partners to train and develop research-active health professionals across the UK, improving overall standards of care * Lobbying Government, devolved administrations and EU to sustain and enhance scientific and clinical research * By ensuring that CR-UK understand where they can learn from other countries' experiences to

  1. Business Studies Company Profile

    Support Culture. Support culture is where the employee is valued as a person, not just as a worker, this links in quite well with the paternalistic management style, where the manager is checking up on how the worker is doing.

  2. Marketing Analysis and Strategy Recommendation for Starbucks Coffee Company

    However, in terms of convenience, despite arduous efforts to establish Starbucks at every corner, there are still more supermarkets than there are Starbucks bars. Realizing the potential for this convenience sector of the coffee market, Starbucks should actively pursuing substitutes that compete in these areas, for example a pre-packaged drinks

  1. Mcdonalds. For this unit I will need to produce a portfolio of work investigating ...

    > Place-Distribution of product McDonalds and the Marketing Strategy The marketing mix is all about satisfying needs of customers and bringing to them the best products introduced in the market. By using the marketing mix McDonalds determine what products customers tend to like more, what price they are willing to

  2. For this assignment I have been asked to produce a new marketing strategy for ...

    My target group who are manly teenagers and young aged people listen to radio this method of advertising will help me to make my target group meet my new strategy. My message will be put through every thirty minutes. By doing my secondary research I found out that the Coca

  1. P3: Explain how developments in the consumer market have impacted on food retailing

    People can have high levels of affluence and low levels of affluence for example people have high affluence on new ranges like Tesco finest. Depending on the income people get in their household, can influence the food industry in terms of them providing their customers with products that they are able to afford for those who have a low income.

  2. Report on Primark's Marketing Strategy.

    These are the important aspects of the every product. There is planning principle for the market which is the Environmental planning and ?Environmental Planning is the process of facilitating decision making to carry out development with due consideration given to the natural environmental, social, political, economic and governance factors and

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work