Tesco’s Success Story

Tescos success story Some of the key reasons forTescossuccess include Tescohas been deducticularly successful because of its powerful brand. It has a report card for value, low sets and for being node focused. Its brand equity and associations devote helped the connection to expand into new sectors and markets. Tescohas also been strong in public relations, advertising and advanceing profile in catchment areas on a local anesthetic level. This local approach to marketing appears to be a key driver for success. Tescohas a good range of outputs, including own label products.It seeks to provide excellent customer service, and ensure high levels of customer satisfaction. The own label products have helped arm profits for the group, and it broad appeal through good, better, scoop out (finest ranges) caters for the widest consumer audience. Aggressive oversea expansion has helped to keep profits high. The organisation has expanded into Eastern Europe, uphill nations such as Chi na and South Korea and even the US, through mid(prenominal) market supermarkets known as, fresh and easy.Its strategy of being stuffy to the customer has been assisted in the UK specifically, whenTescodeveloped different formats for shopping (convenience, metro, express, superstores). It has been the best retailer for format delivery and obtaining some of the best retail positions. It gained a first mover advantage when it launchedTesco. com, which is one of the biggest and most successful online retailers. This part of the business continues to grow market share and has provided a channel to interchange non-food items and other areas of the business including finance.Information technology has revolutionized the retailer, not only in stock-control and dissemination worldwide, but also in terms supplier management. It has enabled better I) retailer-manufacturer variety ii)shorterningof decision making and greater knowledge sharing. Tescois one of the most ripe companies in cons umer understanding aided by IT (e. g. DunhumbyandTescoClubcarddata). Consumer data has i) shaped product offerings ii) ranges iii) givenTescoa better understanding of consumer segments and shopping profiles and iv) helped marketing to build loyalty and develop promotion offerings that suit target groups.This level of sophistry has helpedTescoto remain leader within the UK market. Suppliers are internationally sourced, andTescogains scale economies from its enormous buying volumes. This has enabled the company to keep prices down and supported its low price strategy aimed at the broad consumer market. However, the company has been criticized for its management of suppliers and clashes with the farmers union. There has been maturation opposition to the supermarket because of its size, and the government (through the Monopolies and Mergers Commission) has been involved in ensuring competitive markets in the UK.Recent acquisitions such as TampS stores, have led to a high concentratio n, with only few dominant players within the market. The organisation has a diversified product portfolio, which includes telecommunications, finance, insurance, which provides cross and up sell opportunities to customers. Profits have been invested to support research and development, and its aggressive international expansion plans. Read more thanhttp//www. businessteacher. org. uk/business-resources/case-study-database/tesco-case-study/ixzz2B9gukB98