1.TESCO CASE

Tesco case

Since 2002, Tesco's major focus shifted towards the extension of its existing product ranges. This was catered to include non-food items on a massive scale. Based on studies and surveys, all aspects of the customer offer have been revised and re-implemented. Strategic steps have enabled Tesco to extract revenues from the UK based customers despite the cautious spending patterns of the region. Personal Financing services have provided very valuable support as this wing of Tesco has done significantly well. Extensive efforts in customization of products have made a massive difference in the revenues in the past 15 years. Tesco offers some of the most comprehensive customer based customizations. For example, the new Extra store in Slough, Berkshire features over 900 specialty Asian products, from new vegetarian and Halal ready meals to extensive ranges of bulk-pack rice, and even Bollywood DVDs. Store formats are a way of meeting the different needs of our customers wherever they live and however they want to shop- in large stores, in small stores or on-line. Tesco has strategically entered into all the niches that exist in localities and communities. Tesco has marketed itself as a store that caters to every need in the most efficient and optimum way. In this regard, Tesco has its wings in almost all areas where customers are present, which may be offices, markets etc. This fact shows how Tesco attempts to break the international barriers in its relentless pursuit to come at par with the world's largest retailer; Wal-Mart. Tesco has made the purchase of premium bonds much more convenient for customers (through) the partnership with National Saving & Investments (NS&I). This strategic partnership has opened the financial market for Tesco and marks a very tactful entry into the financial market. The strategic alliance with the mobile operator O2 is a joint venture in which Tesco has joined hands in the creation of a virtual network. This is a very deep rooted strategic move because with communication, Tesco has opened up new marketing channels which will ultimately boost its visibility beyond all barriers and limitations. Strategic Localization is the most important and by far the most tactful strategic move that Tesco has taken. In this regard, Tesco has resorted to the studies of demographics of every new market that they enter and base their operations on the findings of the studies. Studies are undertaken in order to ascertain what the requirements of the customers is and based on that, Tesco can customize the offers and services in order to position themselves as a store for everyone.

Porter's 5 forces competitive model advises to consider the new entrants, substitutes, supplier power, buyer power and rivals. All these factors are critical in the type of operations that Tesco undertakes. Systematic studies are imperative in this regard and must be undertaken in order to be able to get in a position where risks are minimized.

2. Explain the pro and cons of strategic alliances formed by Tesco ...