Analysing Tescos Position In The BCG
Analysing Tesco’s Position in the BCG Matrix
The table below shows the relative market share and the relative market growth for Tesco and its competitors in the UK’s retail market.
Retail Firms
Relative Market Share
Relative Market Growth Rate
Tesco
0.561
32.8%
Asda
0.469
12.7%
Sainsbury
0.405
11.3%
Morrison
0.223
7.9%
Waitrose
0.144
1.1%
Aldi, Netto, and Lidl
0.286
----------- (Wall Street Journal, 2011)
Conclusion
From the analysis above, Tesco can be considered as a star in the UK since it has a relatively higher market share in an industry with a relatively higher growth rate. Tesco has the potentiality of generating significant income. The higher market share of Tesco could be attributed to the company’s ability to distribute quality and extra services to its consumers and coming out with new innovative products and services such as Computer games financial products (credit cards and insurance). The company also put a lot of efforts to increase the awareness of their consumers about the benefits of e-commerce and retailing.
The suggested strategies that Tesco need to adopt in other to be able to maintain its current position include; market penetration, market development, predevelopment and any form of integration (backward, forward or horizontal integration). (Fred. R. David, 20110).
The table below shows the relative market share and the relative market growth for Tesco and its competitors in the UK’s retail market.
Retail Firms
Relative Market Share
Relative Market Growth Rate
Tesco
0.561
32.8%
Asda
0.469
12.7%
Sainsbury
0.405
11.3%
Morrison
0.223
7.9%
Waitrose
0.144
1.1%
Aldi, Netto, and Lidl
0.286
----------- (Wall Street Journal, 2011)
Conclusion
From the analysis above, Tesco can be considered as a star in the UK since it has a relatively higher market share in an industry with a relatively higher growth rate. Tesco has the potentiality of generating significant income. The higher market share of Tesco could be attributed to the company’s ability to distribute quality and extra services to its consumers and coming out with new innovative products and services such as Computer games financial products (credit cards and insurance). The company also put a lot of efforts to increase the awareness of their consumers about the benefits of e-commerce and retailing.
The suggested strategies that Tesco need to adopt in other to be able to maintain its current position include; market penetration, market development, predevelopment and any form of integration (backward, forward or horizontal integration). (Fred. R. David, 20110).