Tesco is the leading retailer in UK. It manages over a thousand supermarkets, hypermarkets, and convenience stores in the United Kingdom, Ireland, Central Europe and Asia. This study explored the competition inside the retail industry in Malaysia. Now, that Tesco has opened 16 stores in Malaysia, the retail industry becomes very competitive. The study analyzed the profile, the company’s goals and objectives and the industry life cycle, which is very important in strategic and competitive study of an organization, especially in the retail and service industry. Since the retail industry undergoes very diverse change almost everyday, it is just right that Tesco’s strategy on change examined. In analyzing how Tesco, Malaysia is competitive, the study utilized the SWOT analysis and Porter’s five forces for the industry attractiveness. The study arrived to the conclusion that Tesco, Malaysia like its mother company in U.K. is very competitive, however, since there are some competitors in the industry, Tesco still needs the aid of Michael Porter’s five forces, generic studies and cost leadership in order to stay on the top in the retail industry
Introduction Tesco is the world leading retailer in United Kingdom and now is currently expanding outside Europe. Currently, they are entering the retail industry in Asia. In this study, the competitive advantage and strategic management of Tesco in Malaysia will be explored utilizing some concepts in strategic management such Porter’s frameworks and SWOT and industry analysis.
An Overview of the Organization The first Tesco Hypermarket was opened in 2002. This hypermarket is in Puchong, Malaysia. Tesco also opened two more stores in Malaysia with Sime Darby Network Corporation. Currently, Tesco, Malaysia profit is increasing and had profited more than $31 million. The suppliers of Tesco, Malaysia are mostly local suppliers, these suppliers understand the needs of the