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Tesco Strategic Analysis

In: Business and Management

Submitted By blue0
Words 529
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Task 1
Tesco is a well-known retail supermarket in the UK as well as almost in the world as it has become the third largest retailer in the world. It has stores 12 countries across Europe, Asia, and North America.

Retailing is really a competitive industry as the competitors are in all over the world, such as ASDA, ICELAND, Sainsbury’s, Waitrose, German Aldi, US Warmart, and many other local retailers. The success is the effective leadership and management. Tesco’s leaders have always set high satndards and clear goals, never setting anything less than the best (The times 100). As a global company, Tesco always looks at and respects the strengths from other competitors and tries to learn and bring them on board as quick as they can to become they own strengths.

Tesco has employed both the differentiation strategy and the low price strategy in the past. According to Poter (2008), cost leadership means having the lowest cost per unit among its rivals in the highly competitive industries, which in the case, returns will be low but nonetheless higher than others. The differentiation strategy is to be outstanding in this industry with a number of dimensions that are broadly valued by customers, employees. Tesco sells a no frills commodity and it is way above a standard business in this industry. In turn, it keeps customers satisfied with their shopping experience and loyal.

Loyalty is what benefit do you create for somebody and in return for the benefit hey will repay you with the loyalty you engage with them. Most of them it matters with customers but also matter with other stakeholders like employees, shareholders and suppliers. As an employer, if you create something well worthy for them, they will reward you. Tesco started holding annual values award ceremony since 2010 to celebrate and award employees who go the extra mile and truly live its values. Tesco...

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