Tesco Strategic Marketing

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ntroduction……………………………………………………………………………..2

Strategic Marketing Planning………………………………………………………..4

The Case of TESCO and ASDA……………………………………………………...7

Conclusion……………………………………………………………………………...9

Analyzing the Competition

Introduction

The ability of a business to stay in the industry is one measure of the business success. This means that being able to survive is a necessity and survival translates to the ability of a business to compete. Since 1980s, marketing strategies have played key roles in planning to overcome challenges. It is believed that this line of thinking will continue to direct the activities of business into the 21st century (Paley 1999). In addition, it is also believed that good managers have the ability to formulate and implement competitive strategies. This is the case since competitive strategies have the capacity to make the business organization stand out among the sea of competitors within the same industrial sector. Therefore, competitive strategies can ultimately aid business organizations in increasing their profitability and achieve their goals. The following sections of the paper will be discussing the rationale behind competitor analysis. In addition, how competitor analysis can help in ensuring the survival of a business organization will also be tackled.

In order to present the theories in a more practical manner, a specific industry will be used as an example. Doing so will allow the paper to present the theories in action and how they work in real business situations. For this particular paper, the chosen industry is the food retail industry. One of the reasons behind the proliferation of groceries and public markets can be attributed to the introduction of money, making the evolution of the grocery dependent on economic changes as well as settlement patterns of people (Mayo 1993). Along with these changes, the nature of grocery stores also changed. Mass production of food products affected the grocery trade tremendously since they would no linger have to depend on local and regional food supplies. During this time, the storekeepers solely carry out the management of store including serving the customers’ needs on top of keeping an eye on wholesales and barter trade.

The convenience that grocery stores offer to the public can also be considered as one of the stores’ positive attributes. Being able to buy all of the things needed in just one-stop sure makes these retail stores an attraction for the consumers. However, the concept of convenience is not the only focus of grocery nowadays. To be to able to compete with grocery stores, one must be able to find ways of at least maintaining their customer base, customer retention, before tackling the task of attracting new ones. In addition, in order to this, most store managers use the concept of customer satisfaction as the basis of implementing store regulations. Providing total shopping experience is seen as one way of pleasing the customers. This process involves the offering of varied products and services that will be more valuable to the consumers.

One of the leading food retail companies is TESCO. It is one of the biggest supermarket chains in the United Kingdom employing 195,000 staff in UK and 260,000 worldwide. They have 979 outlets worldwide, in South Korea, Thailand, Taiwan, Czech Republic and Slovak Republic, 729 of which are in UK. TESCO is estimated to be enjoying 16.7 percent of market shares (Torex Retail). However, TESCO is still aware that they must be able to maintain their competitiveness if they are to continue experiencing success. This means that the company acknowledges the presence of competition and they are also aware that competition needs to be taken seriously. What makes competition such as integral part of the business cycle? How competition does affect the overall performance of a business? These are some of the questions that this paper...
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