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Wednesday, 23 December 2009
TESCO PLC & Ansoff 's Matrix
Tesco as a market leader with a successful business in the UK always attracts many researchers to find more about why the company has competitive advantages among other rivals. “The first basic ingredient of leadership is a guiding vision. The leader has a clear idea of what he wants to do – professionally and personally – and the strength to persist in the face of setbacks, even failures. Unless you know where you are going, and why, you cannot possibly get there” (Warren Bennis, 1994)1. This company has a successful business history in 80 years of its activities. Today, Tesco Plc is considered as a successful retailer in the UK. The position of Tesco among other competitors in the UK shows that this company has been successful in its applied marketing strategies. As a retailer, the company could take over from other rivals and could locate itself with a distinctive gap at the top of the table of 100 lucrative businesses in the UK. Tesco has applied some series of empirical marketing strategies. According to Ansoff matrix strategy, Tesco could develop its markets and products in the UK market, and ultimately with diversification strategy has got in front of other rivals. Market penetration, Product Development, Market Development and Diversification are the strategies in which Tesco has chosen for influence and remaining in the market. By applying these mentioned strategies, Tesco has got its competitive advantages among other rivals. In the UK, the market of groceries has been shared among some major companies where Tesco is the only one who has got the largest market share. Internationally, Tesco could expand its business and its international growth shows that this company has a successful business among some other overseas competitors. In this essay, it has been tried to examine Tesco Company from point of view of Ansoff 's Matrix analysis. Firstly, for a background, this essay looks into the Tesco's success through 80 years of its business, then this essay is going to examine of above - mentioned strategies in which Tesco has chosen for boosting its marketing and sustaining competitive advantages.  

Tesco's History
Jack Cohen, Tesco establisher has started his own business when he begun to sell surplus of groceries in East of London in 1919. The first day's profit was 1 Pound. The business could lead him to sell his first product in his own brand name of Tesco in 1924. This name has come from the two first letters of TE Stockwell, and Co from surname of Jack. In those early days, Jack Cohen had a partner in firm of tea as a supplier, TE Stockwell. In 1929, Cohen could open his first store in Burnt Oak, Edgware in north of London. Tesco has become plc in 1932. A specified land has been bought in north of London at Angel Road, Edmonton for building a new headquarters and warehouse in 1934. In this year, Tesco could open its first modern warehouse with new modern ideas in controlling of central stock. In 1947, share price of 25 p has been modified for Tesco in Stock Exchange. The first "self-service" supermarket has been opened in 1956. Tesco diversified its business to selling of petrol by opening its first petrol station 1n 1974. For the first time, annual sales of Tesco reached to one billion Pound in 1979 and it exceeded 2 billion Pound in the year of 1982 and also, in this year for the first time Tesco could computerize checkouts in stores. In 1985, Tesco has been considered as a first grocery retailer in which emphasizing on nutritional value of its own-brand products through 'Healthy Eating' initiative. In 1991 became biggest independent petrol retailer in Britain. Some various products and services have been lunched in 1992 such as Tesco Organic range, computers for schools and 'Every little Helps'. Tesco became pioneer in customer service to commitment at the checkouts through 'One in Front' in 1994. After two years in 1996, Tesco...
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