group tesco

8/2/2019 Group Tesco

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Group 5

Case study

http://www.youtube.com/watch?v=kGoWKVA87ro&feature=PlayList&p=AC9A7A07F4E4D1D6&playnext=1&playnext_from=PL&index=2



Introduction

Founded in 1919 by Jack Cohen

Low price = bad image?

New corporate strategy formed Largest retailer in the UK, with around

30% market share



Strength and development

in the domestic marketThe Largest food Retailer in the U.KHeading almost 30 %share of market More than 2000 stores ranging from the extra hyper market style to smallTesco express high street outlets.UK’s more valuable brands in 2008

Tesco net worth £8.6bn

Sainsbury’s net worth £4.6bn

Marks & Spencer net worth £3.9bn



Components of

the business strategy

Operation of a multi-format approach

Building Tesco as a brand

Coordinated business planning systemSimplification of in-store systems

Customer loyalty

Efficient and well organized supplycycle



International Expansion

Expansion international operations hasbeen started since 2000

entry new countries substantial increases in the network

and of sales in several markets

change of format in developmentsubsequent



Knowledge transfer

Increased regional sourcing capability Extend data sharing with major

multinational suppliers

Transfer of the multi-format approach Transfer of retail branding Centralize supply chains

Move every day low pricing policy tointernational markets Transferring retailing services to the

international markets

Types of knowledge transferred



Developments in…. Poland

1995 – Acquired 36 small stores taking98% share of the company.

2001 – 10 hypermarkets

2002 – Acquired Dohle. Taking 13 HIThypermarkets, doubling their numbers.

2004 – Developed a multi format approachDistribution centre was opened.



… South Korea

1999 (May) – bought 51% of the SamsungCorporation. $250 million.

(June) – totaled 89% ownership

2001 – 2005 -35 hypermarkets 2003 – new formula for a more manageable

store size

Opened the first Tesco express“most ethical company”



… China

2004 – 50/50 joint venture with Ting Cao(now own 90%)

2005 – 15 storesOpened a distribution centre

Very fast Development

乐购乐购

Happy to buyHappy to buy



Conclusions

Targeting the developing economies

Enter into foreign markets throughacquisition of smaller well establisheddevelopments

A quick development of a brand within thenew market

Management processes

Local adaption



Discussion

What are the key components of implementing a strategy in the UK?

Tesco enter new and developingeconomies, how have they made theserisky ventures successful?

Tesco has developed and grown incrediblyfast throughout the world, in countries suchas Indonesia, Pakistan and Turkey. Withthe fast developments has come a lot of controversy surrounding the Tesco brandand company ethics, do you think this hasany bearing on the lack of Tesco stores inScandinavia?

group tesco

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