ASSINGMENT TASKS

 

1.    TASK 1

 

Other than its core business of grocerry retailor, Tesco diversified its business portfolio by operating in other areas like:

Distribution:

As practiced by other large retailers, Tesco drags goods from suppliers into its regional distribution centers, for further processing & packaging and onward delivery to stores. Tesco is extending its logistics to get goods directly from suppliers (factory gate pricing), in a strategic move to reduce costs and improve reliability by use of latest technology.

Garden Centers:

 

In 2007 Tesco bought shares of 53.1% in ‘Dobbies Garden Center’ with a worth of £155.6 million. In 2008 Tesco decided to acquire rest of the shares of ‘Dobbies Garden Center’ to completely takeover the business. Dobbies continue to trade under its own brand, from its own head office.

 

2.    TASK 2

 

With the slogan “Every little helps” Tesco, even in the times of extreme recession of world over economies has announced handsome profits for their financial year 2009-10. CEO of Tesco in his one of current press statement said on Tuesday that there were growing signs of a pick-up in consumer confidence across the world.

 

Originally specializing in food, it has diversified into areas such as clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and music download, internet service, consumer telecoms and most recently budget software.

Target Market:

An “inclusive offer”. This phrase is used by Tesco to appeal to all classes of society. This trick ‘to market all classes of society’ works for Tesco very well. Other competitors like ASDA’s marketing strategy is focused mainly on value for money, which portray its marketing image of being upscale customer’s market, though it actually sells a wide range of upscale products. Alike, Sainsbury’s retained an image as a high-priced bourgeois supermarket. Sainsbury considered itself to have such a wide range on quality that it did not need to compete on price, and was impartial to attracting lower-income customers into its stores.

 

 

 

Source:  xxxxxxxxxxxxxxxxxx

 

 

TASK 3

 

PORTER’S FIVE FORCES & TESCO:

 

Porter’s five forces remains difficult to define for Tesco as Tesco’s operations are in much diversified areas of businesses. Two forces have been applied below.

 

Rivalry:

Tesco is facing immense rivalry / competition in every area of its business; from its core business of selling grocery, wherein; Sainsbury, Asda, Morrison and others stores are tabling it to tough competition, its Fuel business is also facing tougher competition from Shall, BP and other fuel marketing companies.

 

Threat of Substitutes:

Threat of substitutes in today’s competitive market always exists. For example, Asda or Sainsbury can easily provide substitute of Tesco’s goods. This drives the price of grocery and other items down in each company.

BIBLIOGRAPHY:

 

1. Tesco UK website retrieved on 2010-05-14.
2. Tesco Corporate website retrieved on 2010-05-14.
3. Tesco DVD Rental. Tesco. Retrieved on 2010-05-16,
4. Talking Tesco Tesco website arguing its ethical case retrieved on 2010-05-14.
5. Sunday Times Business. TimesOnline. Retrieved on 2010-05-19.
6. Trailblazing Tesco. Forbes.com. Retrieved on 2010-05-19.
7. Times Online Business. TimesOnline. Retrieved on 2010-05-16.
8. Our history. Tesco plc. Retrieved on 2010-05-19. “The name comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jack’s surname”
9. “Convenience boost for Tesco – Tesco PLC acquires One Stop, Day and Nite convenience stores from T. and S. Stores PLC”, Eurofood, 7 November, 2002.
10. Hannah Liptrot. “Tesco: Supermarket superpower“, BBC, June 3, 2005.
11. Humby, Clive (October 2003). Scoring Points: How Tesco is Winning Customer Loyalty.
12. Tesco announces non-food store trials. Retrieved on 2006–03-13.
13. Tesco PLC Preliminary Results 2005/6 (PDF). Tesco. Retrieved on 2006–06-25.
14. Tesco Interim Results 2006/07, Page 9
15. “Tesco Till ‘Slowest'”, The Mirror, Trinity Mirror, 2006-12-20. Retrieved on 2010-05-08.
16. “Tesco still commanding highest market share“, RTE Business, December 6, 2006 retrieved on 2010-05-15