The Evolution of Supply Chain Management in Retail Sector of Tesco. For the Period of 1991-2013.
• • Founded in 1919 by Jack Cohen as a group of market stalls Business expanded rapidly, by 1939 had over 100 Tesco stores, then from 500 stores in the mid-1990s to 6,351 stores as of Apr 2012 serving worldwide. Tesco is one of the world's largest retailers with a clear, proven growth strategy. having over 520,000 colleagues across 14 markets, employed 520000
stores diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services; telecoms and internet services; DVD rental; and music downloads Third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) Revenues were 66% UK, 15% Europe, 17% Asia & USA, and 2% Tesco Bank The second-largest measured by profits (after Wal-Mart).
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• • • • • • • • • • Despite a 27% of market share, competitors are always one step behind. Quite competitive, dynamic, and innovative market behavior. As market was packed, was in need of expansion in other areas. Other challenges in online selling. Previous attempts of online goods selling market failed because of the inconvenience and cost of shipping and handling. Low population growth, low food price inflation. Well developed and relatively saturated supermarket market in UK. Technological drivers of change. Failed in US. US likes brand, and Tesco isn't a brand.. Tesco's 'Pile it high, sell it cheap' philosophy no longer appealed to shoppers
Tesco's Business Initiatives
• Focus on Customer Relationship Management. • launched it new online initiative called Tesco Direct. • Offer goods and services as the customer valued, not what Tesco could do. • Introduce Internet shopping in the late 1990s. • Use private industrial networks.
Steps taken on Business Initiative
A loyalty card ('Clubcard') was...
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