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 ...view middle of the document...
It appears that creating value for clients is the prime aim of Tesco. This report will elaborate on Tesco’s key strategic and operational issues by identifying the customers and competitors it influences, as well as the market it serves.
Tesco’s sales, market share and profits have been seen to grow annually. The company has a well established and a strategy of growth annually and this has helped facilitate the expansion in other markets.
Tesco makes sure that the products are bought and sold responsibly.
Tesco values are expressed as ‘No one tries harder for customers where we understand customers, be first to meet their needs and act responsibly for our communities.’
Offering customers the best quality of products and services at competitive prices.
Supporting the community and protecting the environment through reducing on the gas emulsions in the air.
Working closely with the suppliers to be in a long term relationship towards quality and good price.
Developing employee skills into skilled personnel through training programs and good rewarding programs.
Providing chief financers with progressive returns of their investments.
Meeting the needs and preferences of the customers by constantly seeking their opinions regarding their product and services.
The company has a well established strategy of growth annually and this has helped facilitate the expansion in other markets.
The objectives of the strategy are:
To be a successful international retailer.
To grow the common united kingdom market.
To be strong in non-food as in food.
To put community at their heart of what Tesco does.
Table showing depth of primary research
From the table above of research findings, we have come up with the Order winners (OW) and qualifiers (Q).
Tesco Market Segmentation
The percentage of customer’s class, according to how they shop for their various needs
The strategic operational issues faced by the manager come according to the market that are segmented into three groups in that there is the good, better, and best.
The good consists of those customers that are low income earners and they always head for the low cheap products. They always aim for value products and that’s to say the products are cheaper.
The better market is that one where customers go for the brand products that are better than the ordinary and not cheap products about the brand that does require minimal incomes.
Best are those customers that go for the finest products for example organic foods like beans and these are high income products. The customers in this category are high income earners because the products are expensive compared to the good and better though at sometimes they go down a bit at times to get the better products.
Identifying the market
The club card was initiated and it is the biggest loyalty scheme in the world used. It is being used...