Tesco Case Analysis
Tesco PLC: Fresh & Easy in the United States (Group B) 1. Why has Tesco been so successful in the UK and in other countries?
Tesco PLC has been successful in the UK and in other countries largely due to Jack
Cohen, who instilled an entrepreneurial and service orientation into Tesco that would drive its customercentric approach for more than 80 years, and Terry Leahy, who established “the
Tesco Way,” which included the company’s core purpose, values, principles, goals and a balanced scorecard.
Tesco had an in store policy that a new checkout line would be opened if there was more than 1 person waiting in line and they were pioneers in selfservice checkout terminal. Tesco was also innovative with its store formats. Tesco stores ranges in size and service from;
Express, Metro, Superstore, Extra, and Homeplus.
Tesco used consumer purchase data to tailor assortments to local customer needs.
Tesco also increased the amount of nonfood items they stocked to include a clothing line.
The Club card, which offered cash back rewards and redeemable vouchers, was successful in creating loyalty among its consumer.
Tesco proved successful in international operations by expanding into emerging
countries with minimal competition such as those in Eastern Europe and Asia. It acquired smaller, established retailers and kept local management in place. They were flexible in their strategy and acted locally using multiple formats.
Tesco also leveraged its brand loyalty to expand in other service areas such as; financial,
telecommunications, and grocery delivery. This by partnering or eventually acquiring recognized and trusted brands/organizations. 2. Which success factors are or are not transferable to the US?
Transitioning to the United States presented a challenge for Tesco considering that their major factor of international success have been the lack of strong competition in the new areas
to
Tesco PLC has been successful in the UK and in other countries largely due to Jack
Cohen, who instilled an entrepreneurial and service orientation into Tesco that would drive its customercentric approach for more than 80 years, and Terry Leahy, who established “the
Tesco Way,” which included the company’s core purpose, values, principles, goals and a balanced scorecard.
Tesco had an in store policy that a new checkout line would be opened if there was more than 1 person waiting in line and they were pioneers in selfservice checkout terminal. Tesco was also innovative with its store formats. Tesco stores ranges in size and service from;
Express, Metro, Superstore, Extra, and Homeplus.
Tesco used consumer purchase data to tailor assortments to local customer needs.
Tesco also increased the amount of nonfood items they stocked to include a clothing line.
The Club card, which offered cash back rewards and redeemable vouchers, was successful in creating loyalty among its consumer.
Tesco proved successful in international operations by expanding into emerging
countries with minimal competition such as those in Eastern Europe and Asia. It acquired smaller, established retailers and kept local management in place. They were flexible in their strategy and acted locally using multiple formats.
Tesco also leveraged its brand loyalty to expand in other service areas such as; financial,
telecommunications, and grocery delivery. This by partnering or eventually acquiring recognized and trusted brands/organizations. 2. Which success factors are or are not transferable to the US?
Transitioning to the United States presented a challenge for Tesco considering that their major factor of international success have been the lack of strong competition in the new areas
to