TESCO GLOBAL STRATEGY

Tesco Global Strategy



Tesco Global Strategy

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 engaged in retail and related activities in the United Kingdom, the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Malaysia, Japan, China, and the United States. 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). 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 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"(Tipples, 2002). 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 well. The only competitive edge Tesco had been the price. The products that were available at the store seemed to be of ordinary. Due to the rise in the income of customers in Britain, the customers did not want to look for bargains. They were now seeking high quality products. In order to cater these changing demands of the customer, Tesco decided to close down its numerous stores to focus on super-stores to provide improved quality.

Product & service

Products

Services

Brands

Food

General merchandise

Electrical goods

Clothing

Household goods

Home furnishings

Petrol

Online sale of products

Telecommunication services

Financial services

Pharmacy services

Broadband internet services

Cherokee

F&F

Healthy Living

Value

Tesco standard

Finest Tesco

Industry Analysis: Pestle Framework

Political Factors

Tesco is functioning well and providing services with its stores all around the world. For the legislations of employment, the government promotes retailers to supply a blend of job openings from low paying stretchy and locally based jobs to centrally located, skilled and high paying jobs in order to meet the needs of the students, working parents and senior citizens. Being an innately community and labor concentrated sector, Tesco realizes that selling has a huge impact on people and the jobs factors. It regularly hires students, aged and disabled people at lower wages, and in an industry with characteristically soaring staff revenue, these employees proffer a higher level of allegiance and consequently symbolize sought-after workforce (Tipples, 2002).

Economic Factors

Fiscal aspects are of apprehension to Tesco, as ...