. How Successful Has the Strategy of Tesco Been Within the Industry?
In nowadays Tesco has a presence in 13 markets and around 4000 stores worldwide. Tesco, the biggest retailer in the UK with amazing group sales of £51.8 billion and gross profits exceeding £2 billion. In 1937 Tesco opened Britain's first self-service store. This new system allowed for the faster servicing of people and lowered the costs of labor. Throughout the 60's Tesco used so called "pile it high, sell it cheap" strategy that was set in motion by Cohen. This new strategy proved to be unsuccessful.
Tesco had a grocery market share of 29.0% and became UK's largest retailer in early 2005 and was ahead of it competitors. The main reasons for this were:
An "inclusive offer" . Tesco met the needs of low, medium and upper class customers in every store.
Tesco's started its own-brand products, which include the upmarket "Finest" and low-price "Value" ranges. Thus they were able to increase their profits rather than selling other brands products.
Customer focus: they made an unusual strategy move by not focusing on " maximizing shareholder value " this move was taken by Sir Terry Leahy, chief executive since the mid-90s.The company's mission statement reads, "Our core purpose is, 'To create value for customers to earn their lifetime loyalty'. We deliver this through our values, 'No-one tries harder for customers', and 'Treat people how we like to be treated'". Since 2000 the company has a four-pronged strategy implemented by Laura Wade-Gery:
• "Core UK business" – Tesco made a large-scale expansion into the convenience-store sector that move was innovative and energetic.
• "International" - Tesco started its international operations, focusing on retailers with weak strategies in Central Europe, Asia and the US.
• "Non-food business" – Tesco also entered other lines of business like clothing, consumer electronics, health and beauty products, media products etc. Many high street chains were soon threatened.
• "Retailing services" -Tesco also entered into areas
Tesco had a grocery market share of 29.0% and became UK's largest retailer in early 2005 and was ahead of it competitors. The main reasons for this were:
An "inclusive offer" . Tesco met the needs of low, medium and upper class customers in every store.
Tesco's started its own-brand products, which include the upmarket "Finest" and low-price "Value" ranges. Thus they were able to increase their profits rather than selling other brands products.
Customer focus: they made an unusual strategy move by not focusing on " maximizing shareholder value " this move was taken by Sir Terry Leahy, chief executive since the mid-90s.The company's mission statement reads, "Our core purpose is, 'To create value for customers to earn their lifetime loyalty'. We deliver this through our values, 'No-one tries harder for customers', and 'Treat people how we like to be treated'". Since 2000 the company has a four-pronged strategy implemented by Laura Wade-Gery:
• "Core UK business" – Tesco made a large-scale expansion into the convenience-store sector that move was innovative and energetic.
• "International" - Tesco started its international operations, focusing on retailers with weak strategies in Central Europe, Asia and the US.
• "Non-food business" – Tesco also entered other lines of business like clothing, consumer electronics, health and beauty products, media products etc. Many high street chains were soon threatened.
• "Retailing services" -Tesco also entered into areas