Tesco’s Operations and Policies in relation to Porter’s Diamond Model
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Tesco’s Operations and Policies in relation to Porter’s Diamond Model
wanzala.victor@gmail.com
Table of Contents
Table of Contents 2
Introduction 3
Porter's Diamond Model 3
Factor Conditions 4
Demand Conditions 4
Related and Supporting Industries 4
Firm Strategy, Structure and Rivalry 5
Tesco’s Historical Expansion and Current Position In Relation To Porter’s Diamond Model 5
Factor Conditions Vs Tesco’s Historical Expansion and Current Position 5
Demand Conditions Vs Tesco’s Historical Expansion and Current Position 6
Related and Supporting Industries Vs Tesco’s Historical Expansion and Current Position 6
Firm Strategy, Structure and Rivalry Vs Tesco’s Historical Expansion And The Current Position 7
Conclusion 7
References 9
Introduction
In 2009, supermarkets were the UK market leaders in terms of food retailing. Founded by Jack Cohen in 1919, Tesco boasts of being the biggest retail chain in the UK with regard to the local market share as well as sales within the international markets of its operation. Tesco closes the list of the three top world retailers behind Wal-Mart and Carrefour (Mehta, 2009). Tesco’s success has been attributed to its online approaches and is considered as the largest online grocer with orders averaging a quarter a million every week. Tesco Plc has undergone several developmental stages and now operates successfully in three regions; Europe, Asia and in the US. According to Mark (2005), the company heavily utilized acquisition option in expanding its operations in the global markets in the three regions of the world although in some countries the grocer adopted a combination of approaches.
Porter's Diamond Model
Quick MBA (2010) asserts that classical theorists dealing with international trade argue in favour of comparative advantage on the basis of a country’s factor endowment. Classical theorists think of land and natural
Tesco’s Operations and Policies in relation to Porter’s Diamond Model
wanzala.victor@gmail.com
Table of Contents
Table of Contents 2
Introduction 3
Porter's Diamond Model 3
Factor Conditions 4
Demand Conditions 4
Related and Supporting Industries 4
Firm Strategy, Structure and Rivalry 5
Tesco’s Historical Expansion and Current Position In Relation To Porter’s Diamond Model 5
Factor Conditions Vs Tesco’s Historical Expansion and Current Position 5
Demand Conditions Vs Tesco’s Historical Expansion and Current Position 6
Related and Supporting Industries Vs Tesco’s Historical Expansion and Current Position 6
Firm Strategy, Structure and Rivalry Vs Tesco’s Historical Expansion And The Current Position 7
Conclusion 7
References 9
Introduction
In 2009, supermarkets were the UK market leaders in terms of food retailing. Founded by Jack Cohen in 1919, Tesco boasts of being the biggest retail chain in the UK with regard to the local market share as well as sales within the international markets of its operation. Tesco closes the list of the three top world retailers behind Wal-Mart and Carrefour (Mehta, 2009). Tesco’s success has been attributed to its online approaches and is considered as the largest online grocer with orders averaging a quarter a million every week. Tesco Plc has undergone several developmental stages and now operates successfully in three regions; Europe, Asia and in the US. According to Mark (2005), the company heavily utilized acquisition option in expanding its operations in the global markets in the three regions of the world although in some countries the grocer adopted a combination of approaches.
Porter's Diamond Model
Quick MBA (2010) asserts that classical theorists dealing with international trade argue in favour of comparative advantage on the basis of a country’s factor endowment. Classical theorists think of land and natural
References: Dong-Sung, C., & Hwy-Chang, M. (2000). From Adam Smith to Michael Porter: Evolution of Competitiveness Theory. Singapore: World Scientific. Gong, Y. (2013). Global Operations Strategy: Fundamentals and Practice. Berlin: Springer-Verlag. Mark, P. (2005). Retail Multinational Learning: A Case Study Of Tesco, Aston Business School, Aston University, Birmingham, UK, International Journal Of Retail & Distribution Management, (33)1, pp.23-48. Mehta, J. (2009). Tesco – Every Little Helps. [Online] 6 January 2009. Available at: http://www.slideshare.net/j4g2r/tesco-presentation. [Accessed: 29 November 2013]. Porter, M. E. (1990). The Competitive Advantage of Nations. New York: Free Press. Quick MBA (2010). Porter’s Diamond of National Advantage. Available at: http://www.quickmba.com/strategy/global/diamond/. [Accessed: 29 November 2013]. Tesco (2009). Value Travels: Annual Report and Financial Statements 2009. Available at: http://www.tescoplc.com/files/pdf/reports/annual_report_2009.pdf. [Accessed: 29 November 2013].