Current Business Strategies At Tesco Essay Example | Topics and Well Written Essays - 5750 words

Current Business Strategies At Tesco - Essay Example The company started trading its shares to the public in 1947 to boost its capital base. In the late 1950s, Tesco took over the ownership of numerous of grocery stores within the UK, among them being Harrow Stores Ltd, a 200-grocery chain. Moreover, Tesco has implemented strategies to penetrate the international market through acquiring already established stores. With the coming of e-commerce, Tesco has developed strategies to harness this great potential. In 2010, the company started a mobile phone based website to allow customers make purchases from their smart phones. However, the strategies adopted by the company have not always gone down well with different stakeholders. Early this year, the business has proposed to tailor its deals according to the income of the nearby shoppers. Clarkson (2012) asserts that 75 percent of the Tesco’s shoppers are opposed to a new strategy by Tesco to base its deals on the income of nearby shoppers. 1.2: RESEARCH METHODOLOGY The research u ses a methodology of reviewing various sources that have discussed the strategic operations of Tesco. I relied mostly on internet sources to carry out this research. 1.3: Findings 1. Tesco has relied on a strategy of acquisition of its competitors 2. Tesco has continuously adopted strategies to penetrate into the international market 3. Tesco has a strategy of diversifying the products it offers to customers 4. Technology has fuelled the growth of Tesco, with adoption of e-commerce and mobile-commerce 1.4: Recommendations 1. Tesco should carry out a market research before implementing a strategy to avert what dissatisfaction among customers. 2. Tesco should continue increasing its express stores 3. Tesco should continue making stronger brands as this... This paper approves that key implementation issues and risks faced by the company are as follows - Tesco is planning to enter new global markets. The strategy adopted by Tesco is to protect the brand image and promote expansion plans. It has been in controversy over the treatment of customer and staff. Additionally, it’s approach in foreign business has been criticised. Tesco’s biggest criticism has been that it has been creating a monopoly in the market over products. Furthermore, the company had aggressive planning in building new stores. Tesco has adopted information systems to increase its sales through ecommerce. This report makes a conclusion that the retail business of Tesco is highly competitive and it needs technological support and innovative solutions for getting competitive advantage. The innovative solutions Tesco can introduce are - new format stores and creating a novel online shopping experience. What’s more, implementation of technologically advanced online solutions is not expensive and takes 6-8 months. For sustained competitive advantage, the company should have command over price by delivering value added competitive products and services. For example - it can introduced health foods for different age groups. The process of production of health foods will take 6 to 7 months. It needs to work on internal advantages and reduce weaknesses to create a platform for innovation, research & development. The company should also be able to organize the process of implementation along with globalization and diversification.