Tesco's Global Strategy in Competitive Retailing
Name: Easvaren Arunasalam Matrix No: 816563 Assignment: Case 12-1 <Tesco’s Global Strategy: The Assignment>
Question: What are the key elements to Tesco’s success in the competitive retailing industry?
Indentify critical success factor that has taken Tesco for victory growth among the competitive retailing industry is to consider their internal operational effectiveness. Tesco explained its growth strategy through “sell for less” model by get cheaper, sell more volume and grow bigger. These factors are essential for retailers who provide a compelling value scheme to the customer and are able to quickly respond to market changes. They realize that being flexible and being able to quickly adapt to changes in the marketplace are key to their survival.
However Tesco’s do have other than above factors to further strengthen their growth position in this highly aggressive retailing industry. Below are the explanations of these key elements.
Branding and Reputation has been strategic advantage for the company where spreading like wildfire by transforming the generic products into the brand-specific, largely through carefully branded packaging and the promotion of an “every penny or cent counts” mindset. The company has a strong brand image and is associated with good quality, trustworthy goods that represent excellent value. The product and service development process of the company have been substantially re-engineered to facilitate better management of product lifecycles and more efficient delivery of wide ranges of products to customers. In addition, Tesco’s is also very successful in terms of customer loyalty due to its loyalty cards system and its general approach to customizing services to the needs of every customer.
Information Technology (IT) Integration into Tesco’s growth strategy has created an opportunity for them to lively compete in an increasingly dynamic and complex environment. Tesco use IT system to
Question: What are the key elements to Tesco’s success in the competitive retailing industry?
Indentify critical success factor that has taken Tesco for victory growth among the competitive retailing industry is to consider their internal operational effectiveness. Tesco explained its growth strategy through “sell for less” model by get cheaper, sell more volume and grow bigger. These factors are essential for retailers who provide a compelling value scheme to the customer and are able to quickly respond to market changes. They realize that being flexible and being able to quickly adapt to changes in the marketplace are key to their survival.
However Tesco’s do have other than above factors to further strengthen their growth position in this highly aggressive retailing industry. Below are the explanations of these key elements.
Branding and Reputation has been strategic advantage for the company where spreading like wildfire by transforming the generic products into the brand-specific, largely through carefully branded packaging and the promotion of an “every penny or cent counts” mindset. The company has a strong brand image and is associated with good quality, trustworthy goods that represent excellent value. The product and service development process of the company have been substantially re-engineered to facilitate better management of product lifecycles and more efficient delivery of wide ranges of products to customers. In addition, Tesco’s is also very successful in terms of customer loyalty due to its loyalty cards system and its general approach to customizing services to the needs of every customer.
Information Technology (IT) Integration into Tesco’s growth strategy has created an opportunity for them to lively compete in an increasingly dynamic and complex environment. Tesco use IT system to