Essays on Tesco Expected to Look to Premium Positioning Case Study

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The paper "Tesco Expected to Look to Premium Positioning" is a wonderful example of a Marketing Case Study. This study is about presenting Tesco Plc. business situation by taking a critical analysis of the various factors surrounding its strategy choice environment. Tesco Plc was established in 1919 by Jack Cohen who by then owned a very small stall in the London region of East End. The company organizational structure is developed in such a way that power is derived down to junior staff in order to help it make informed decisions on daily situations on an independent basis.

Despite the opportunities and the strengths the company experience in the market, competition is turning out to be a major threat for it to maintain its leadership in the industry. This analysis has further established that the company has a strong brand and position in the market both locally and internationally. However, because the company is operating in the countries with most of which the industry is very competitive, penetrating into the new markets in the developed world would be very significant for the business and the recommended strategy to do so is through market development.

This is because the strategy will help introduce new products that fit the markets even though this must be supported by extensive market research. 1. Company overview Tesco Plc was established in 1919 by Jack Cohen who by then owned a very small stall in the London region of East End. Since then, the company has grown to reach greater heights employing up to 500,000 workers who serve millions of customers across the globe each work (Finch 2010). 1.1 Organizational chart The company chart can be described in terms of decentralization whereby power has been devolved into various functions which include customer, community, operations, people and finances.

This is to ensure that all functions have some independence even though attachment to top rank in the organization headed by the company CEO. As shown in appendix 1 below, power can be easily filtered down so that even the people working in the lower rank have the opportunity to some decisions while working in the company stores. 1.2 Product portfolio The company has a wide range of products and services.

The company first of all deals in all food-related products making it one of the largest food brands in the UK and the rest of the world. The company also engages in some banking services for its customers. 1.3 SWOT for the company The brand is the key strength for the company with large capital and infrastructure base. The company's weakness is based on the fact that the company is more engaged in food retailing. Company strength can be talked about one-stop shopping. Finally, the company threat emerges from competition and change of climate that affect food production. 2.

Market analysis  The competitor analysis is an instrument that can be used by the strategist to tell how the market looks like and the position of each in the industry. Tesco being a retail company is facing competition with other companies for market leadership and position. Among the competitors are Asda Group Ltd, BP PlC, Carrefour S. A, ExxonMobil Corporation, The Big Food Group Plc, and Royal Dutch/Shell Group. Others include Safeway Inc. , Safeway Plc, Aldi Group, and John Lewis Partnership Plc.

The competitive position in the industry is determined by the position of other rival companies in the industry and what they are able to offer (Tesco 2012).

References

Baker, R 2010, Tesco expected to look to premium positioning, BusinessWeek, viewed 12th Dec. 2012 from http://www.marketingweek.co.uk/tesco-expected-to-look-to-premium- positioning/3012471.article

Daloitte 2010, Emerging from the downturn: Global Powers of Retailing,

Daloitte.com, viewed 12th Dec. 2012 from http://www.deloitte.com/assets/Dcom- Australia/Local%20Assets/Documents/news- research/Press%20releases/Global%20Powers%20of%20Retailing/Global_Powers_of_R etailing _2010_report.pdf

Desjardins, D 2005, Tesco strategies turn up competitive heat in U.K , bnet news, viewed 12th Dec. 2012 from http://findarticles.com/p/articles/mi_m0FNP/is_4_44/ai_n13248624/

Finch, J 2010, Tesco opens its first zero carbon store, The Guardian

(UK), viewed 12th Dec. 2012 from http://www.guardian.co.uk/business/2010/feb/02/tesco-carbon-neutral-green- building

Fortune 2010, Tesco PLC, Global 500 Companies, viewed 12th Dec. 2012 from http://money.cnn.com/magazines/fortune/global500/2010/snapshots/7930.html

Salaman, G 2001, Understanding business organizations, London, Routledge.

Tesco Plc 2012, Our strategy, viewed 12th Dec. 2012 from http://www.tescoplc.com/index.asp?pageid=12

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