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Introduction to Business. Tesco as a Case Study

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How Introduction Tesco is a global public limited company founded by Jack Cohen in the United Kingdom in 1919. Measured by revenues and profits, Tesco is considered as one of the global leaders in international food retailing as a core business. In addition, its business also includes non-food products and services such as banking, insurance, telecommunications, health, entertainment and furniture. There are numerous Tesco stores in 14 countries with strategic diversification of investments having contributed to their achievement and progress over the last 12 years (Fame, 2010; Deloitte, 2010). Furthermore, according to Berwin (2009), the grocery retail-market structure of the United Kingdom is dominated by 4 influential firms an ‘oligopoly’ comprising of Tesco, Asda, Sainsbury and Morrison’s with a whole market share of 75.6%. Tesco, however, takes 30.5% of the market share of the retailing industry triggered by the achievement of economies of scale to maintain the advantage of price, outstripping the growth of competitors (Morris et al, 2004; TNS World panel, 2009).

Table No.1

Source:tescoplc,2010 The main value for Tesco is to maximize profit and to provide goods and services that are cheap and affordable to consumers or the public.
The company is also adaptable and quickly responds to the changes in the market. It has grown strong due to diversification into non-food products/ services, for example financial services and telecommunications. Furthermore, its success has been due to maximizing the local markets first then broadening up to bigger market.

Tesco’s target market is middle mass market, social-economic and age spectrum.
Adaptability has been one of Tesco’s success factors with good quality products. Sales from each international market accounted for nearly 30% of the group sales among 2008 and 2009, compared to just…...

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