MARKETING STRATEGY

Global Marketing Strategy of Tesco



Table of Contents

Global Marketing Strategy of Tescoi

Executive Summary1

The company2

Product & service3

Component 14

Industry Analysis: Pestel Framework4

Political Factors4

Economic Factors5

Social/Cultural Factors5

Technological Factors6

Environmental Factors6

Industry Analysis: Porter's Five Forces6

Threat of New Entrants6

Bargaining Power of Suppliers6

Bargaining Power of Customers7

Threat of Substitutes8

Bargaining Power of Competitors8

Cost Leadership10

Tesco's pricing strategies11

Application11

Suitability of Strategy12

Internal Resources Required13

Recruitment And Selection13

Employee Training13

Resources & Capabilities of Firm14

New Technologies Affecting Tesco's Operation15

Investment16

Tesco's Ethical Principles17

Value Chain17

Inbound Logistics18

Operations18

Outbound Logistics18

Marketing And Sales19

Company Infrastructure19

Human Resource Management19

Technology Development19

Balanced Scorecard20

Component 221

Strategies Available For International Operations21

Branding and Reputation21

IT Integration21

Managing the Suppliers22

Promotional Tools22

Advertising22

Direct marketing/ PR23

Research and Development23

Protection of new Development24

Societal Responsibility24

Economic Responsibility24

Executive Summary

In this study we have tried to explore the concept of retail sector in a global context. The main focus of the report is on Tesco and its relation with retail market worldwide. The research also analyzes many aspects of retail sector. The report comprises of the following sections: Introduction, History of Tesco, About Tesco, Pestle Framework, and Porter's Five Forces, Generic Strategies, Tesco's CSR Approach and a concluding paragraph. In this paper the discussion is based on the structure of Tesco and its new approaches and strategies. Tesco has also recently carried out large-scale social marketing initiatives, including the opening of a flagship supermarket environment Wick, wind turbines, systems for collecting and using rain water, cooling and energy saving equipment and cooking energy-efficient lighting. Nevertheless, it is essential for Tesco to focus at the genus level as the basic skills are deeply embedded in Tesco at its operational level during the work routine

Global Marketing Strategy of Tesco

The company

The company that I have chosen to conduct strategic analysis is Tesco. Tesco PLC (Public, LON: TSCO) is an international seller. The company also provides retail banking and insurance services through its subsidiary of Tesco Personal Finance PLC (formerly Tesco Personal Finance Group Limited) (FPT). The company has two business segments, retail and financial services. Services of retail channels include online shopping company, tesco.com and Tesco Direct, Telecommunications, Tesco Personal Finance (TPF), and business consumer research (Conner, 1993, 135). Today it is the third largest global retailer based on revenue, behind Wal-Mart and French Carrefour, but the second largest based on profit, ahead of Carrefour.

In 1919, Tesco Plc was established by Jack Cohen, by utilizing the bonus which he achieved for his services in the World War I army. Then in 1924, he purchased a tea consignment from the company TE Stock well. He decided to put the initial three alphabets of TE Stock well, and the initials of his name Cohen collectively to name his brand 'TESCO'. In 1929, Cohen opened the very first Tesco store in Edgware, London. Originally, Cohen's formulated the strategy of "Piling it high, selling it cheap"(Achrol, 2003, 146). Despite the fact that this strategy assisted Tesco in attracting a great amount of consumers, it also assisted Tesco in branding itself as a store for average class consumers and even earned an image as a low-end store. Furthermore, Tesco had small and poorly equipped stores, as ...