Contents
- Introduction
- Strategic Purpose
- Industry Analysis
- Poter’s 5 forces.
- PESTLE Analysis
- Resources and Capabilities
- Poter’s value chain
- Critical Success Factor
- Business and Corporate strategies
- The strategy clock
- Cost advantage strategies
- Conclusion
- References
Introduction
The Supermarket industry of UK is dominated by few players. This industry has around a 63million customers in UK and feeds more than 26 million households. The supermarket of this country is worth of £174.5 billion in 2014. It is expected that the supermarket industry will have a value of £ 203 billion in 2019. An increase of 16.3% is expected for this industry. In supermarket, large-format shops sell a wide range of grocery items, non food items etc. The performance of this industry depends on its customer’s income and their urge to spend. The large supermarket buys products at a cheap price and is able to sell those items at a low margin. After the recession of 2008 the revenue of this industry grew every year. This industry of UK helped many small and big retailers to solve their problems. One of the big players of UK supermarket industry is Tesco. It is a multinational company having it’s headquarter in Cheshunt of UK. In1919 Tesco was founded by Jack Cohen. It opened its first store in 1929 and from that time the firm expanded its business rapidly. In UK Tesco has 28% of market share in the supermarket industry.
Strategic Purpose
Tesco is experiencing success for a long time. The company has a strong focus on its business and strategies. The vision of the company is to remain constant but changing its business practices and strategies according to the changing world. The firm has major seven types of business strategies which help it to achieve its success. It vision includes to become most valuable business by serving customers and communities with the help of committed and loyal staff and shareholders (Tesco Inc, 2014). It vision also describes that Tesco wants to expand all around the world by using all the opportunities. It believes in innovation of modern ideas. The mission of Tesco is to become a full formed maintenance company from AMSS Company. The firm’s mission aims to be a wide ranged company providing tubular service. It has a mission of selling mechanized product along with different other products.
The values of Tesco contribute a lot in its success and to hold its position in the competitive market. Its business value is to look after the benefit of the customers and treat everyone of them equally. The company’s value is involved in every level of its business. Its values let the employees of Tesco know what type of business the company is into and helps its customers to build their expectations.