• 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. Aims and Objectives of Tesco

    market does not gratify them enough and they crave to build up their market share. All of these aims that Tesco wish to achieve will ultimately help them remain as the grocery leader in the private sector as they are reliant on profits to satisfy their shareholders and remain in business.

  2. BTEC BUSINESS UNIT 2

    Recruitment All businesses want to recruit the best employee. This means that they need recruitment procedures and trained staff who can: Identify the vacancy * Decide which applicants should be interviewed * Decide where to advertise it. * Interview candidates (or arrange interview)

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

    my strategy has been successful and has affected the overall Coca Cola Company top have a higher market share. Conclusion For this assignment I chose to launch a new product of Coca Cola.

  2. Business Studies Company Profile

    CO2 their cars spurt out each year, and about how many miles to the gallon it can do. They also say how much research they're doing to minimise their cars CO2 emissions. Another trend which has been ongoing for a while is making the car driving experience easier and more comfortable, such as new technologies, gadgets and car parts.

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

    One of McDonald's most important objectives is to keep all their stakeholders happy including their employees. For the benefit for all their employees, McDonalds has begun a trial of a family contract. This contract enables two people from the same family working in the same restaurant to cover each others shifts with no prior notice.

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

    What customers think and feel about a company and/or its products is a key aspect of business success also. Customer expectations and demand must be met if a business will want their customers to return and purchase from their business again.

  1. How the NHS and Tesco Use Market Research

    can find ways to improve on the business, public records such as census data are public records of statistics in from a national to neighborhood level use by government, Tesco wont be able to access census data but the NHS has access to these records.

  2. Research into Business Plans

    Persuading other stakeholders to, for example, finance a business, both as it is starting up and then as it is growing; One of the most common reasons why an entrepreneur would produce a business plan would be to persuade others to invest and take an interest in the business.

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