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Tesco's business strategy and current market position

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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.

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