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How do cornershops survive against Tesco?

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How do corner shops survive against Tesco? My name is Anees Ahmed, I am a year 10 student at slough and Eton C of E School and I am studying a course based on GCSE business studies. Over the next few months, I will be researching on how a small corner shop survives against Tesco and I will research on what methods the corner shops use to survive against Tesco. The question I will be investigating is: In this business, studies course work I will be researching by doing a price survey, which will involve me, comparing a corner shop against Tesco. I will be using different techniques to find research. I will be comparing the two businesses finance, liability, location, doing a price survey, advertising, specialist and extra services. I will be analysing the good and the weak points of the two different businesses. History of Tesco In the year, 1919 just after world war one Tesco was founded by a man called Jack Cohen who was at that time a sole trader. The only products he sold were simple groceries on a market stall in east London. In the year 1924 Tesco sold their first ever brand called Tesco Teas, which was supplied by a man called T.E. Stockwell. Later on in that year, Mr. Cohen went into partnership with T.E. Stockwell his supplier. In the year 1932 the two partners did not like working as a partnership and were worried about the disadvantages of being in a partnership and wanted little more protection so they decided to change into a private limited company- Tesco stores Ltd. In 1947, the two partners were finding it quite hard to raise finance, as it was just two people so they decided to change into a Plc because in that way they can raise money through the public by selling part of company to the public called a share, which was at that time 25p. ...read more.


There are a wide ranges of products that you can buy under one roof for example; you can now buy paint instead of going to the DIY store, you can buy CDs instead of going to HMV. Tesco have sold more CDs than HMV and more clothes than Mothercare. Selling non-food products has helped Tesco to increase their profits as 28% of the overall profit comes from non-food products. Financial services: * Mortgages * Car insurance * Life insurance * House insurance * Pet insurance * Loans * Credit cards * Saving accounts * Bank accounts In the last five years, Tesco have been offering these financial services. In order to offer the financial services Tesco carried out extensive research and found out that the unemployment in the U.K. is very low and most people are rich and have a high spending power. They also found out that since house prices have been going up people feel rich and are willing to go out and take out a loan and get credit cards. As the people in the U.K feel rich, Tesco has decided to offer services like e.g. pet insurance, loans, mortgages and car insurance. Over the last five years since Tesco has been offering these financial services. Tesco has increased its income by making millions and has diversified into new markets. The reason why Tesco is successful is that they have loyal customers who put faith in their products and services. By diversifying into different markets, Tesco have benefited by a huge amount, which has lead to them having a �2.2 Billion profit, making them the leading supermarket in the UK, which has a market share of 28%. Features of Tesco Tesco offers their customers a ranger of services, which include disabled facilities for example; they offer disabled toilets, parking which allows them for an easy entrance. Another service they offer is disabled buggies which is for customers who are unable to walk or have back problems. ...read more.


which can be found all under one roof. Several different departments can be found in Tesco, such as food and drink, non-food, clothes, pharmacy/opticians and electrical products. By selling all of these products, it means that Tesco have diversified, which means they are able to spread their risks. By having all of this, it means that Tesco has made their store convenient and efficient for their customers, which makes them keeping coming back to shop. Tesco also offer various facilities to their customers, such as free car parking, a petrol station, a caf� and free trolleys. All of these different facilities attract the customers to keep coming back and therefore, allows Tesco to increase their sales and profit. Different sales methods Tesco use several different sales methods on how they sell their products. They do this by knowing what type of products consumers tend to buy for their everyday needs, and what their shopping habits are. This sort of information can be found out by efficient market research and from customer club card records. Tesco uses a unique method of attracting a wider market by selling their products on their online website (Tesco.com). This is known as Internet shopping, which Tesco has set up for the customers to use in order to purchase inline. However, I think that it is a pity that they still charge �5 for each delivery that they make even though they are a multinational billionaire company. Another method of raising finance for the company is by offering club cards, which attracts customers to purchase from Tesco, as they will be rewarded points by purchasing using their club card. This has lead to Tesco being the first retailer who has been successful in investing in the club card. Therefore, by investing into the club card, it has been a good return on investment. Furthermore, this will help Tesco to gain customer loyalty, which will make customers keep coming back to shop there for their weekly shopping. ?? ?? ?? ?? ...read more.

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