Strategy is organisation’s scope and direction over the long-term: which helps in achieving advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil the expectations of stakeholder.
In any organisation strategies have many levels
1. Groups of businesses
Corporate Strategy – it is related with the overall objective and aim of the business to meet the expectations of stakeholders. This is an essential level since it is heavily affected by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement".
The whole strategy for the corporation or organisation is overflow to units of business and these are below:
* Must be holistic
* Must be visionary in some ...view middle of the document...
(a) Threats of new entrants and substitutes:
Tesco is now changed into supermarkets and already put barriers to entry. Major companies like Tesco, Sainsbury’s, exist in UK supermarket and by opening small stores like metro and express, it make the barriers to small grocery stores. So the threats of competitors in food market are low. To establish in market, new competitors have to keep prices very low and attain high quality products. Competitors will not be able to find cheap and reliable suppliers. Tesco has advantage of economies of scale. Company made its competitive place in global market, as it always focus on:
* Meeting customer needs
* Different products
* Low prices
* Good quality products
By giving the clubcard services, it gain loyalty of customers and they keep coming to Tesco for lifetime.
For food products, threats of substitutes are low in market. In food market
(b) Bargaining power of buyer and supplier
There are different ways of improving performance through different strategies helps to build the customer loyalty and good relationship with suppliers. Suppliers’ power for the company is low because of long term relationship between suppliers and retailers and Tesco has good brand image globally and high market share and profit. Company get cheap prices from their suppliers because suppliers have no other option, if they don’t reduce the prices supermarkets like Tesco, Sainsbury’s will left them and go to others and they will left with only small markets.
The bargaining power of buyer is high. If Tesco don’t give cheap prices products
Tesco is UK retail supermarket; they found that within UK market, domestic organic growth was more difficult to manage in developed market. Tesco faced difficult conditions in market as follows:
* Growth of population is low
* Mature UK supermarket
* Strong competitors Like Asda and Sainsbury’s
* Entrance of new format stores
Tesco came up with new innovations